Xiaomi, the Chinese smartphone company, announced on Thursday that it will introduce its debut car at a significantly lower price point compared to Tesla's Model 3, amidst escalating price competition in China's cutthroat electric car market.
CEO Lei Jun revealed that the standard version of the SU7 would be available for 215,900 yuan ($30,408) in China, a price that he acknowledged would result in the company selling each vehicle at a loss. For comparison, Tesla's Model 3 starts at 245,900 yuan in China.
Lei Jun asserted that the standard SU7 outperforms the Model 3 on over 90% of its specifications, with only two aspects where Xiaomi might take three to five years to catch up with Tesla. Additionally, he highlighted the SU7's minimum driving range of 700 kilometres (nearly 435 miles) compared to the Model 3's 606 kilometres.
The company reported receiving orders for over 50,000 cars within the first 27 minutes of sales commencement at 10 p.m. Beijing time on Thursday.
Delivery of the SU7 is slated to begin by the end of April, Lei stated. He also claimed that Xiaomi's car factory, which is fully automated in all "key" steps, can produce an SU7 every 76 seconds, although it wasn't immediately clarified if the factory was fully operational.
Earlier in the week, Lei Jun stated on social media that the SU7 would be the premier sedan "under 500,000 yuan" ($69,328).
Xiaomi's car is entering a fiercely competitive market in China, with numerous companies launching new models and reducing prices to stay afloat. Chinese telecommunications behemoth Huawei has collaborated with traditional automakers, notably introducing the Aito brand, whose vehicles are often showcased in Huawei smartphone outlets.
According to data from the industry website Autohome, Tesla's Model 3 remains the top-selling new energy sedan in China with a driving range of at least 600 kilometers (372 miles) and a price below 500,000 yuan.
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