Tech giant Xiaomi is making waves in the electric vehicle (EV) market with its latest offering, the SU7 electric sedan. Despite facing challenges in production capacity, the company has received an overwhelming response, with over 100,000 orders for the sleek and eco-friendly vehicle.
According to research firm, CreditSights, Xiaomi aims to deliver between 50,000 to 60,000 units of the SU7 in 2024. However, the company anticipates incurring losses in the initial two years of production. The Xiaomi Beijing factory, responsible for manufacturing the SU7, is expected to scale up its production capacity from 4,000-5,000 units in April to 6,000 units by the year’s end.
The surge in demand has resulted in Xiaomi facing challenges in meeting customer expectations. According to media reports, the current daily production rate of 300 cars is insufficient to fulfill the growing demand. As a result, waiting times for new orders have extended to up to eight months, highlighting the strong market interest in the SU7.
The SU7, boasting a starting range of 700 km, was officially launched in China on March 28, priced at 215,900 yuan (approximately Rs. 84.5 Lac). The response was immediate and impressive, with Xiaomi receiving 50,000 orders within the first 27 minutes of the launch. This figure doubled to over 100,000 orders by Wednesday, indicating the strong appeal of the EV among consumers.
Customers placing orders for the SU7 are required to deposit 5,000 yuan (around Rs. 2 Lac), which becomes non-refundable within seven days. Locking in the configuration further solidifies the purchase, with Xiaomi reportedly receiving 40,000 lock-in orders as of the latest update.
Acknowledging the financial challenges, Xiaomi’s CEO Lei Jun admitted that the company is currently operating at a loss, particularly with the entry-level variant, SU7 RWD standard. Deliveries of other variants, including the SU7 Standard and Max AWD, are scheduled to commence by the end of April, with the Pro variant set to follow in May, boasting an impressive 830 km CLTC range.
To address production constraints, Xiaomi has urged its suppliers to enhance their production capacity to match the factory’s monthly output target of 10,000 units. The SU7 is contract-manufactured by the state-owned BAIC at the Beijing plant, which has a nominal capacity of 150,000 units per year. Plans for expanding the factory’s capacity with the construction of a second phase are slated to begin in 2025, aiming to double the plant’s output to 300,000 units per year upon completion.
