Xiaomi CEO Lei Jun has recently shared some interesting tidbits with the media, offering a more precise timeline for the tech giant’s automotive arm’s launch of its tri-motor SU7 Ultra. Additionally, the billionaire CEO spoke about Xiaomi Automobile’s willingness to lose money upfront to expand its portfolio to markets in Europe and become a top-five automaker in the world.
Becoming a top five automaker in the world is a lofty goal for an automaker that is a mere three years old, but Xiaomi Automobile has the backing of an electronics manufacturing powerhouse in Xiaomi Inc. as well as the support of its CEO Lei Jun, who has already pledged to invest $10 billion in the BEV development venture.
Xiaomi is trying to do something Apple teased but could never really get moving on – transitioning from a smartphone behemoth to a bonafide competitor in the EV market. Xiaomi Automobile’s track record is short but quite promising so far.
The Chinese automotive arm developed its flagship model, the SU7 sedan, faster than expected. The SU7 launched in late 2023 and locked in over 50,000 orders during the first 27 minutes it was on sale. The company has since had to bolster its assembly lines and production targets to keep up with demand, all while developing additional BEV models as an encore.
In July, Xiaomi announced a new 1,548hp Ultra trim of the SU7, coming in the first half of 2025. Xiaomi Automobile also already has a second bespoke model in development that will compete against the Tesla Model Y, possibly in markets around Europe and beyond.
Xiaomi CEO hints at expansion plans to Europe and beyond
As pointed out by CnEVPost, Xiaomi CEO Lei Jun shared some company updates via livestream earlier today, including a clearer timeline of when customers will see the arrival of the production version of the aforementioned SU7 Ultra. Per the video, the 1,548 horsepower four-door sedan will launch in China in Q1 of 2025.
Because the BEV is so powerful, Jun said each build will leave Xiaomi’s production facility in “beginner mode. ” Drivers must complete and pass a step-by-step exam to unlock the vehicle’s full performance, to “unleash it.”
While Xiaomi initially focuses on its two variants of the SU7 in China, expansions to Europe might soon be in the cards. The automaker had the SU7 on display in Paris during the 2024 Olympic Games, where Lei Jun said it would be available globally, without sharing a specific time frame on when that might happen.
Xiaomi also recently took the SU7 Ultra to the world-famous Nürburgring track, reaching a top speed of over 350 km/h (217.5 mph). Although it only has one EV on the market, Xiaomi’s CEO has big goals for the automotive arm, previously stating a target to become one of the world’s top five automakers in 15 to 20 years. It’s possible, but it will cost a lot of money to get there, something Xiaomi executives are aware of and don’t seem phased by.
In a conversation with Bloomberg TV, Xiaomi CFO Alain Lam confirmed plans for global expansion, including Europe, but was realistic about the pending costs to get there:
We are more focused on our growth than profitability at this point. We do believe scale will bring profit in the future. Right now at this point I only have one SKU, it’s far away from what we call profitability. We need to continue to invest in this business.
Per Xiaomi’s Q2 2024 financial report, its automotive arm recorded an adjusted net loss of RMB 1.8 billion ($252 million) and delivered 27,307 SU7 BEVs in China. Those delivery numbers should grow in the second half of the year as Xiaomi has completed its assembly line expansion and has twice increased its production targets for the year, which now sits at 120,000 units.
Before Xiaomi becomes a top automaker in Europe and beyond, its immediate focus will remain on China, as it should. Lam again spoke:
We do have the global expansion in mind, although right now we are trying to fulfill all the demand from customers in China.
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