Last month, Apple gave up on its electric car dream. This month, Xiaomi – one of the iPhone maker’s biggest rivals in China – is showing Apple how it should be done.
Xiaomi did what Apple couldn’t after announcing plans to start selling its first electric vehicle (EV), the Speed Ultra 7 (SU7) on March 28 in nearly 30 cities across China.
According to Lei Jun, co-founder and CEO of Xiaomi, this launch marks an extraordinary feat: it comes just three years after the company announced its entry into the electric vehicle space.
CEO Lei Jun introduced SU7, Xiaomi’s first electric car. (Photo: Reuters)
In December 2023, Lei wrote on social network X about his experience driving 100 cars to “learn from the strengths of each car” and get “firsthand experience” which he felt was necessary to build a competitive car. The CEO’s efforts may have paid off: Xiaomi says the SU7 can accelerate from 0 to 100 km/h in 2.78 seconds.
On X, he shared “still determined to make a great car” as it approaches the 3rd anniversary of its EV manufacturing journey.
Like Apple, Xiaomi is best known for its smartphones. Data from research firm Counterpoint shows that in the first six weeks of the year, Xiaomi accounted for 13.8% of the smartphone market share in China, just behind Apple’s 15.7%.
Meanwhile, Apple has spent a decade trying to make an electric car without success. Apple’s decision to end its EV project came after a number of manufacturing issues forced the company to consider a less ambitious design for its self-driving vehicles.
2020, Bloomberg reported that Apple has a self-driving small truck prototype and is testing it in Arizona. However, it is increasingly difficult for Apple to justify spending about $1 billion annually on the car program.
In contrast, Xiaomi tries to take advantage of the existing EV industrial base in China. The company benefits from a partnership with Beijing Automobile Group, allowing it to quickly access a production license, according to Bloomberg. This partnership can help Xiaomi produce about 200,000 EVs per year.
Of course, the EV market is increasingly difficult and there is no guarantee that Xiaomi will succeed. The electric vehicle market is on the decline. Companies like Tesla and BYD are launching a price war to attract consumers.
Xiaomi, which has yet to announce pricing for the SU7, is looking to target the high-end market. This could be a challenge in China, where EV manufacturers face slowing demand. However, it cannot be denied that Xiaomi has managed to do what Apple dreamed of for 10 years.
(Theo Insider)
