Xiaomi secures 8th largest EV startup in China after SU7 launch
Visitors film around Xiaomi's first electric vehicle
Chinese smartphone maker Xiaomi has become the country's eighth-largest electric vehicle start-up after selling more than 7,000 units of its first model- the SU7 sedan, in April, according to industry data.
Xiaomi's entry into China's packed EV market is poised to further turn over the world's largest auto market, where companies are already locked in a fierce price war amid weakening demand.
The company is an established household name in China for its popular smartphones and home appliances.
It has now joined newcomers such as Nio and Xpeng as new automakers focused on EV production. The category excludes legacy brands like Volkswagen and established EV makers such as Tesla, BYD and Geely.
In its first month of sales since its late March launch, Xiaomi sold 7,058 SU7s. The company targets deliveries of over 100,000 units this year, attempting to achieve an average of 11,618 units per month for the rest of the year.
Xiaomi's estimated monthly sales of more than 11,000 units for the remainder of the year, placeditself in a tight-knit competition with Volkswagen, which has fared better than most other foreign legacy auto brands in competing with Chinese EV players.
China’s local champion BYD topped the country’s EV sales rankings with 120,234 units last month. Sales were largely driven by affordable models much cheaper than the SU7.
U.S. giant Tesla netted 31,421 units in Model 3 and Y sales in April. Xiaomi's base model SU7 is about $4,000 cheaper than the base model of Tesla's Model 3 in China. As EV makers grapple with growing competition in the China market, many companies are now targeting overseas markets.
China's EV market is becoming crowded by an increasing number of start-ups that include pure EV manufacturers such as Nio and Xpeng; as well as EV sub-brands, from traditional automakers including GAC's Aion and Geely's Zeekr.
Huawei-backed Harmony Intelligent Mobility Alliance (HIMA) is also among the new upstarts. Some Huawei vehicles such as the Aito M5 and M9 come in both extended-range and pure EV variants and both versions are counted as EVs.