TechnologyWill Xiaomi slash prices on electric cars?

Will Xiaomi slash prices on electric cars?

How much will Xiaomi’s first electric car cost? 12,000 euros as some suggest or 46,000 as the latest indiscretions suggest. But above all, why is there such a gap between the two estimates?

Will the automobile industry experience the shock that the smartphone industry suffered a few years ago with the arrival of Xiaomi? Indeed, at the beginning of the 2010s, the Chinese manufacturer had attacked the European market with products like the Mi1 which, without being up to the most high-end smartphones of the time, allowed itself to follow them in terms of performance while displaying a significantly lower price. Can this strategy, at the origin of Xiaomi’s success in Europe, be applied to the automobile industry, the manufacturer’s new playground?

Indeed, after having extensively documented its production and displayed its ambitions, Xiaomi unveiled its first electric car during MWC 2024, the SU7 (it had actually been unveiled a few weeks earlier in China). For a few hours we have also known the official marketing date in China for the electric sedan. This is March 28, although the manufacturer specifies that its future customers will be able to try the car from March 25. On the other hand, there is still no official information regarding prices. However, the very serious Chinese media Jiemian, citing internal sources, has put forward a first price estimate, a price which could be between 32,000 and 48,000 euros.

©Xiaomi

Xiaomi is no longer an entry-level manufacturer

If the SU7 is actually displayed at this price level, the launch model being expected around 46,000 euros, there would be no shock wave to match the one that Xiaomi had unleashed on the smartphone market . And for good reason, the competing model and benchmark in the category, the Tesla Model 3, is sold at a roughly similar price in China, between 31,000 and 36,500 euros depending on the version.

Although this price may be surprising, it is nonetheless logical. On the one hand, the SU7 is larger in size than a Tesla Model 3, with 5 m in length and 1.92 m in width. But it would also be more ambitious from a technological point of view. In this regard, to those who suggested prices of between 12,000 and 19,000 euros a few weeks ago, Lei Jun, the brand’s boss, responded that it was necessary ” show some respect for the technology behind cars », leaving little doubt that the final price would be higher.

Xiaomi Su7 Sedan Electric Car Interior
©Xiaomi

Xiaomi victim of its image?

If we look at the evolution of prices for Xiaomi smartphones, this allegation is not surprising. The Chinese manufacturer has just launched a brand new Xiaomi 14 at a price of 1,000 euros, a price barely lower than those charged by the premium brands in the sector, Apple and Samsung in the lead. Xiaomi continues to make entry-level smartphones, notably with its Redmi and Poco brands, like the excellent X6 Pro, but it has been several years since its most successful models, those which bear the Xiaomi seal, are no longer sold off.

Without a doubt, Xiaomi is paying for its first years during which the manufacturer created a serious brand image, certainly, but at a low cost. If the reality differs today, this role now being assigned to Redmi, the fact remains that for the general public Xiaomi rhymes with low prices.

What about the SU7 in France?

Of course, these price estimates are for the Chinese market. For the moment Xiaomi has not given the slightest indication of possible marketing outside China, on the contrary. For Lei Jun, the SU7 will first have to “prove itself on the domestic market”. This probably also explains why Xiaomi is less inclined to cut its prices.

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