Updated March 12th, 2024 at 08:22 IST

Xiaomi unveils debut electric vehicle SU7, shares surge

The smartphone giant revealed through a Weibo post that it has established 59 stores across 29 cities nationwide to facilitate orders.

Reported by: Business Desk
Xiaomi EV | Image:Xiaomi EV
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Xiaomi in focus: Xiaomi announced on Tuesday the commencement of deliveries for its inaugural electric vehicle (EV) model SU7 this month, marking its entry into the world's largest auto market amid intense competition. 

The smartphone giant, ranking as China's fifth-largest, revealed through a Weibo post that it has established 59 stores across 29 cities nationwide to facilitate orders. 

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A grand launch event is scheduled for March 28, coinciding with the anticipated revelation of SU7's price tag.

During morning trade, Xiaomi's shares surged by 7 per cent, reflecting investor optimism in the company's new venture. 

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Notably, China witnessed an 18 per cent surge in EV sales during January-February, closely trailing the 21 per cent growth observed throughout 2023. 

Amid weakening domestic demand, the market has witnessed aggressive price reductions, led by key players such as BYD, in an effort to attract consumers.

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At the unveiling of the Speed Ultra 7 (SU7) sedan last December, Chief Executive Lei Jun expressed Xiaomi's ambition to emerge among the world's top five automakers. 

Highlighting the SU7's cutting-edge "super electric motor" technology capable of surpassing acceleration speeds of Tesla and Porsche EVs, Jun emphasized its appeal to consumers. 

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Analysts anticipate that the integration of the car's operating system with Xiaomi's popular smartphones and electronic devices will resonate well with the company's existing customer base.

Xiaomi's foray into the EV market comes as part of its strategic diversification beyond its core smartphone business, a plan initially outlined in 2021. 

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The company's cars will be manufactured by a unit of state-owned automaker BAIC Group in a Beijing factory with an annual capacity of 200,000 vehicles. 

Having pledged a $10 billion investment in the automotive sector over the next decade, Xiaomi stands out as one of the few newcomers in China's EV market to receive approval from authorities amid concerns of oversupply.

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(With Reuters Inputs)

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Published March 12th, 2024 at 08:22 IST