The Xiaomi SU7 EV launch was such a resounding success that the vehicle sold out of all of its 2024 inventory within a span of 24 hours, according to InsideEVs.
The automaker is the latest to throw its hat in the fray and make a grab for marketshare in China, alongside of leaders BYD and Tesla.
Xiaomi's stock raged higher in Hong Kong on the news heading into Tuesday's U.S. market open, which was preceded by Tesla missing its Q1 delivery guidance by a wide margin and posting its first Q1 delivery decline since 2020.
Within the first four minutes of its launch last Thursday, Xiaomi's debut car, the SU7, saw 10,000 preorders in China, escalating to 50,000 in 27 minutes and nearly reaching 90,000 by day's end, the Inside EV report says.
The surge in demand for a vehicle by a newcomer to the automotive industry means customers who put down a 5,000-yuan ($850) deposit could face up to a seven-month wait, Reuters reported, citing delivery timelines from Xiaomi's car app.
Scheduled to start deliveries by month's end, the top-tier Max model of the SU7, priced at 299,900 yuan ($41,500), has a delivery estimate of 27 to 30 weeks, pushing some deliveries into the next year. The Standard and Pro versions, at 215,900 yuan ($29,900) and 245,000 yuan ($33,990) respectively, are expected to take 18 to 21 weeks for delivery.
The SU7, equipped with in-house developed electric motors and available in rear-wheel or all-wheel drive, features an 800-volt system and batteries from CATL or BYD, offering up to 515 miles (830 kilometers) of range. BAIC is set to manufacture the vehicle in Beijing, with an initial capacity of 150,000 vehicles annually, doubling in the second phase.
Priced around $4,000 less than Tesla's Model 3 in China, the SU7 boasts a longer range, additional interior screens, a head-up display, and a more upscale interior that integrates with Xiaomi's consumer electronics. Despite the availability of cheaper alternatives like the Zeekr 007, Xiaomi's marketing has evidently made a significant impact in the highly competitive EV market.
We noted just yesterday that EV automakers were scrambling to offer incentives to compete not only with Xiaomi's launch, but leaders Tesla and BYD. On April 1, Shanghai-based Nio unveiled an incentive plan worth up to 1 billion yuan ($186.4 million) to encourage gasoline vehicle owners to switch, offering perks like battery swaps, extra driving function subscriptions, and a Nio smartphone.
At the same time, Xpeng reduced prices on certain vehicles by up to 20,000 yuan, and Chery Automobile introduced free purchase tax on select models and improved trade-in values.
The heavy promotions stand at odds with Tesla's strategy in China, which saw the automaker increase its Model Y SUV price, a move previously hinted to boost pre-hike demand and sales.
Recall we also wrote just days ago that Nissan is the latest manufacturer to aim to cut EV costs in order to keep up with an increasingly competitive and saturated landscape. The company is now seeking to compete with Chinese rivals by slashing costs by 30%, Financial Times reported last weekend.
Similarly, we have noted that auto companies are slashing investment in EVs, as is the case with American auto manufacturers like Ford and GM. We wrote last month that Joe Biden's vision for EVs across America is in "full collapse".
