Xiaomi SU7: This Chinese SUV has the whole auto world talking about it and it has smashed sales targets; here's why it has become a runaway hit and has Tesla worried
Xiaomi reported a 30.5% increase in revenue compared to the previous year, driven by robust sales of both its smartphones and the SU7.
As the world's third-largest smartphone manufacturer, Xiaomi introduced the SU7 earlier this year as part of its strategic shift towards electric vehicles. The SU7 is equipped with advanced features such as assisted driving software and remote voice control, which allows drivers to operate household appliances from their car. Priced at 215,900 yuan (approximately $30,000), the SU7 has quickly become a top seller in China, the largest market for electric vehicles globally.
In October alone, Xiaomi delivered over 20,000 units of the SU7. The company has now set a new target of 130,000 deliveries for the year, having already surpassed its initial goal. The SU7 has also gained international attention, with Ford's CEO praising the vehicle as «fantastic» and expressing reluctance to part with it after driving one for six months.
The success of the SU7 is putting pressure on Tesla, which is facing challenges in maintaining its market position in China amidst the rise of local competitors like BYD, Xpeng, and Zeekr. Tesla reported declining sales in China in October, contrasting with the strong performance of its rivals.
FAQs:
Are Xiaomi's financials on the rise? The company reported an adjusted loss of 1.5 billion yuan ($207 million) in the third quarter for its EV business and other new initiatives, which is a slight reduction from the previous quarter's loss of $252 million.
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