Chinese tech giant Xiaomi has secured over 70,000 locked-in orders for its SU7 electric cars as of Saturday, with plans to maintain its automotive business exclusively focused on the Chinese market for the next three years, according to founder Lei Jun.

Speaking at an investor conference, Lei Jun stated that Xiaomi aims to achieve more than 100,000 deliveries of the SU7 in 2024. The locked-in orders pertain to purchases where buyers have placed non-refundable deposits.

Xiaomi introduced its electric vehicle, which takes design inspiration from Porsche, at the end of last month, entering a competitive Chinese EV market with a compelling price point - under $30,000 for the base model. This price undercuts the base model of Tesla's Model 3 in China by $4,000.

While acknowledging that Xiaomi expects to incur losses on the SU7, Lei Jun emphasized that many of its suppliers also serve prestigious automotive brands like Mercedes Benz, BMW, and Audi.

"Given the high costs associated with suppliers and parts, the gross profit margin will not be very high," Lei Jun explained. "I estimate the gross profit margin to be around 5-10%." He added that Xiaomi is in discussions to enhance production capacity and secure further cost support from suppliers.

Primarily recognised for its affordable smartphones and home appliances, Xiaomi plans to invest an additional 11-12 billion yuan this year in new ventures, including the automotive unit and the operating mobile system for its phones.

Lei Jun articulated his long-term vision for Xiaomi to become one of the top five automakers globally within the next 15-20 years.

The company's foray into the electric vehicle market signals its ambition to diversify its offerings and establish a significant presence in the burgeoning automotive industry, leveraging its established brand reputation and customer base.

(With Reuters inputs)