What’s new: Xiaomi Corp. has secured 75,723 orders for its SU7 electric vehicles in the 28 days since its debut, marking a strong start for the smartphone giant’s entry into the highly competitive market.
Delivery of SU7 has reached 5,781, said chief executive Lei Jun at an automotive show in Beijing on Thursday, boasting a record monthly delivery for a debut brand. Xiaomi is eyeing an annual delivery of 100,00 vehicles, according to Lei, who in April predicted annual sales of 72,000 units.
The sales target beat analysts’ expectations. Guosheng Securities earlier estimated sales of SU7 would top 80,000 in 2024, rising to 260,000 by 2026.
Everbright Securities predicted that sales of SU7 in 2024 would be between 50,000 and 100,000 units. Only when annual sales reach 300,000 to 400,000 units and the gross margin climbs to around 15%, can Xiaomi’s automotive business break even, Everbright said.
Background: Xiaomi in late March launched sales of its first-ever electric car SU7 with aggressive pricing, marking its foray into the world’s largest EV market dominated by Tesla Inc. and BYD Co.
Priced between 215,900 yuan ($29,800) and 299,900 yuan, the SU7 takes on Tesla Inc.’s Model 3 and the electric Porsche Taycan in its top-performance version.
Xiaomi, which produces personal computers, wearable devices and smart home appliances, invested around 6.7 billion yuan in its EV business last year, accounting for nearly a third of its annual adjusted net profit of 19.3 billion yuan, according to its earnings report.
Calling the EV project his last startup endeavor, Lei pledged earlier this week on his WeChat account to invest up to 12 billion yuan into the operation and other emerging businesses.
Contact reporter Han Wei (weihan@caixin.com)
