Xiaomi’s SU7 set to launch on the 28th of this month – price yet to be revealed.

Reporter: Li Xing Editor: Pei Jianru

“You can now make an appointment for a test drive of the Xiaomi SU7, and it is expected that the vehicle will be available for test drives in the store on March 28th.” On March 12th, a store clerk at the Xiaomi store inside Beijing’s Oriental New World shopping center conveyed to reporters from the Daily Economic News.

On the same day, Xiaomi’s founder, Chairman, and CEO Lei Jun announced via his official Weibo account that Xiaomi’s first mass-produced vehicle, the SU7, would officially hit the market on March 28th. “On March 28th, the Xiaomi SU7 will be officially launched; this fulfills our three-year promise,” stated Lei Jun.

Photo by Reporter Li Xing

Subsequently, Xiaomi Automotive stated via its official WeChat public account that the Xiaomi SU7 will be delivered upon its launch, with the phrase “delivery equates to volume.” A simultaneous launch event is scheduled for March 25th across 29 cities at 59 stores, where the first batch of Xiaomi SU7 appreciation event reservations will commence.

The Daily Economic News reporter noticed inside the Beijing Oriental New World shopping center that the current Xiaomi sales store is located on the LG floor (basement one) of Zone 4, while the soon-to-be-launched Xiaomi automotive direct sales store—Xiaomi Home—is situated on the UG floor (ground level) of the nearby Zone 3.

“The new store is expected to officially open on March 28th, at which time the current Xiaomi store will move to the UG floor, merging with Xiaomi Automotive to form Xiaomi Home,” the aforementioned clerk at the Xiaomi store in the Oriental New World shopping center told the reporter. In the future, Xiaomi Home direct sales stores will sell both existing Xiaomi products and Xiaomi vehicles.

Beijing Direct Sales Store Nearing Completion of Renovation

At the entrance to Zone 3’s UG floor in the aforementioned Beijing Oriental New World shopping center, one can see a white tarp with the Xiaomi logo and the words “Xiaomi Home, coming soon” on the left side, surrounding the Xiaomi Home store that is currently undergoing renovations.

Upon inspecting the white tarp’s “Construction Site Public Notice Board,” the reporter discovered that the Xiaomi Home store being renovated has a project title of “Beijing Oriental Plaza UG Level A305~A308 Renovation Project,” with a renovation area of 795.5 square meters; construction began on November 20th, 2023, and is scheduled to end on March 20th. This suggests that the Xiaomi Home store will complete its renovations by that date.

Regarding the completion time of the renovations, the reporter reached out to the person responsible for the construction site at Xiaomi Home. The respondent said, “Currently, it’s still in the confidential stage, and it’s not convenient to disclose related information.”

It’s known that there are a total of six stores in Beijing where Xiaomi vehicles can be pre-booked for an appreciation event, two of which are the first batch of sales and service cooperators that have signed with Xiaomi Automotive and are currently renovating their Xiaomi Automotive 2S stores.

Recently, when visiting the Xiaomi Automotive 2S store located in Xianglong Borui Automotive Industry Park in Chaoyang District, reporters from the Daily Economic News learned that external renovation work for Xianglong Borui’s Xiaomi Automotive 2S store would officially commence on March 15th, with the expectation to complete the renovations before the end of March. Several employees within the Xianglong Borui Automotive Park indicated that the Xiaomi 2S store might officially open at the end of March.

The second Xiaomi Automotive 2S store available for appreciation appointments is located in Xihongmen, Daxing District, named the Xiaomi Automotive Sales Service Center in Jingnan Yuntong Automotive Park, Daxing District, Beijing.

As the launch of the SU7 approaches, Xiaomi Automotive’s channel deployment is in full swing. On December 28th last year, Xiaomi Group officially signed letters of intent for cooperation with the first batch of 14 sales and service cooperators at its Beijing headquarters, including Xianglong Borui. After establishing cooperation with Xiaomi Automotive, dealerships will primarily undertake two of the four “S” components from traditional 4S shops (which include vehicle sales, spare parts, aftersales service, and information feedback)—sales and aftersales services—while spare parts and information feedback will remain the responsibility of Xiaomi Automotive.

Pricing for the SU7 Remains to Be Revealed

It is understood that Xiaomi Automotive’s sales approach adopts a “direct sales + franchising” model. In addition to the first batch of 14 sales and service cooperators, Xiaomi Automotive has also launched an “Open City Recruitment Plan,” which currently includes 17 cities such as Suzhou, Chongqing, Ningbo, Nanjing, and others. The recruitment targets Xiaomi Automotive Sales Service integrated stores (2S), with functions including new car sales agency and authorized aftersales services but excludes complete vehicle resale and delivery functions.

Previously, Lei Jun expressed his concerns during an interview with CCTV News, stating, “I’m particularly worried that if the car doesn’t catch on right away, nobody will buy it. But what worries me even more is if everyone rushes to buy it, they might have to wait one or two years, and that would surely lead to harsh criticism.”

However, what is attracting more attention than the delivery is the pricing of the Xiaomi SU7. At the end of last year’s car technology conference, Lei Jun repeatedly emphasized that the first model was a bit expensive and denied rumors regarding prices like 99,000 yuan or 149,000 yuan.

An anonynamous brand manager at a new energy vehicle company told reporters from the Daily Economic News that they speculate the Xiaomi SU7 will be priced under 200,000 yuan, stating, “Otherwise, it would be unmarketable.”

However, Cao He, the president of the All-Union Car Merchants Investment Management (Beijing) Co., Ltd., believes that if Xiaomi Automotive sets the opening price at 200,000 yuan, the chance of failure could be significant. “The competition at this price range is intense,” Cao analyzed, suggesting Xiaomi Automotive might have a better entry strategy by introducing a high-end vehicle first, then extending the product line downwards, “This approach would probably be better.”

Professor Ji Xuehong from North China University of Technology also believes that as Xiaomi Automotive’s first model, the Xiaomi SU7’s pricing won’t be below 200,000 yuan. Most new brands start from the high end and work their way down. “The competitor models for the Xiaomi SU7, like the XPeng P7, Model 3, BYD Han, etc., are generally priced in the 200,000 to 350,000 yuan range. From this perspective, the Xiaomi SU7’s price should also be above 200,000 yuan,” Ji Xuehong conveyed to the Daily Economic News.

Lei Jun: Confident in Opening the Market

It is noteworthy that Xiaomi Automotive’s market entry coincides with the escalating price wars in the domestic car market. Statistics show that since late February, about ten automotive companies have reduced the prices of their models, mainly consisting of new energy pure electric and hybrid models, priced in the 100,000 to 200,000 yuan range, with the highest price reduction nearing 15%, amounting to 30,000 yuan.

Against this backdrop, many netizens jokingly comment that the pressure is on Xiaomi Automotive, which has yet to announce its pricing. “Recently, a lot of friends have been asking about the fierce competition in the industry, and whether Xiaomi Automotive is confident in making an entrance into the market? Of course, we are confident because we are Xiaomi Automotive, and we have made thorough preparations,” Lei Jun responded on his Weibo account.

Lei also stated that Xiaomi Automotive’s journey from zero to one differs from the growth stage and consumer expectations Xiaomi Mobile faced 14 years ago when it went from zero to one. Xiaomi Automotive needs to deliver something truly different, with the most important aspect being real intelligent technology to meet consumer expectations for both Xiaomi and new energy vehicles. “The century-long automobile race is just beginning for China,” said Lei.

Ji Xuehong believes that although Xiaomi Automotive is entering the fray somewhat later compared to the “Weilai Xiao Li” (NIO, XPeng, and Li Auto) and other new forces and has missed the best timing for market entry, it has not missed the development window of new energy vehicles and still has a great chance of success. “The industry is currently in the second half of the development of automotive intelligence. Xiaomi Automotive has certain advantages in intelligent hardware and has formed a solid consumer and brand reputation,” analyzed Ji Xuehong.

According to Lei Jun’s plan, Xiaomi Automotive’s first-year sales target for mass-produced vehicles is 100,000 units, aiming to join the front ranks of the industry. With 15 to 20 years of effort, Xiaomi Automotive aims to become one of the top five global automotive manufacturers. “The competition is increasingly fierce in the intelligent electric vehicle market, and it will be very difficult for Lei Jun to lead Xiaomi Automotive to break through. At the very least, in the first few years after entering the market, Xiaomi Automotive will have a tough battle to fight,” Ji Xuehong stated bluntly.

Daily Economic News

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