Xiaomi SU7 Starts at $32k – A Threat to Porsche Taycan Sales?

Xiaomi SU7: A Threat to Porsche Taycan Sales or Not?

The price of Xiaomi SU7 has finally been revealed, instantly turning Lei Jun back into the “Lei Chief”. However, Nie Han’s estimation of the starting price at 300,000 RMB was proven wrong as it turned out to be 215,900 RMB, making the cost-performance ratio exceptionally impressive.

Now, anyone who watched the Xiaomi SU7 launch event should know that when Lei Jun was presenting the slides, he wasn’t aiming to compete with the Porsche Taycan; instead, his target was the Tesla Model 3!

Xiaomi SU7 Threat

So, the question arises: will the launch of Xiaomi SU7 have an impact on the sales of Porsche Taycan? Nie Han gives the answer upfront: yes, but it will be negligible and can be disregarded.

Xiaomi SU7 Threat Answer

Although many joke that Xiaomi SU7 is “Porsche Mi”, in reality, there is no direct competition in terms of pricing between Xiaomi SU7 and Porsche Taycan. The price range of Xiaomi SU7 is 215,900-299,900 RMB, whereas the price range of Porsche Taycan is 898,000-1,838,000 RMB. The entry-level models of the two differ by over 4 times, and the top-end models by over 6 times.

Xiaomi SU7 Threat Pricing Comparison

In other words, if you are a Porsche Taycan owner, would you be willing to spend over a million RMB on a Xiaomi SU7 that looks similar to your car? Clearly, this is not a valid proposition but rather an obvious choice that even fools would make, don’t you agree?

Xiaomi SU7 Threat Potential

Certainly, there will be some impact, as Xiaomi SU7 does resemble Porsche Taycan significantly, affecting a certain group of potential buyers interested in Porsche Taycan. Nevertheless, this impact will not be substantial in the overall sales.

Xiaomi SU7 Threat Impact

According to relevant statistics, in the third quarter of 2023, Porsche Taycan’s global sales were 10,017 units, showing a 23% year-on-year increase. In China, the sales were 7,664 units, with a 27% year-on-year increase. Despite a slight slowdown in growth, the overall sales remain on an upward trend.

However, Xiaomi SU7 undeniably boasts strong product capabilities, almost on par with Porsche Taycan or even surpassing it in some aspects.

Xiaomi SU7 Threat Product Capabilities

For instance, its performance is outstanding. Xiaomi SU7 is equipped with the Xiaomi Super V6S dual-motor four-wheel-drive system, delivering a maximum power of 673 horsepower and peak torque of 838N·m. The official claim states an acceleration of 0-100 km/h in just 2.78 seconds, with a top speed of 265 km/h.

Apart from robust performance, Xiaomi SU7 excels in handling as well. The new car features front double wishbone and rear multi-link independent suspension, paired with the CDC active electromagnetic suspension system. As per official information, Xiaomi SU7 achieved an elk test result of 80 km/h, comparable to Porsche Taycan’s performance.

Xiaomi SU7 Threat Handling

Regarding the intelligent cockpit, Xiaomi SU7 undoubtedly surpasses Porsche Taycan. While Taycan uses Porsche’s in-house system for the infotainment system, there is still a noticeable gap in terms of smoothness and functionality compared to Xiaomi SU7.

What’s more significant is that Xiaomi SU7 will be integrated into Xiaomi’s smart ecosystem, allowing seamless connectivity with Xiaomi smartphones, TVs, routers, and other smart devices, offering users a more convenient and intelligent driving experience.

Xiaomi SU7 Threat Smart Cockpit

Even with the impressive performance and high cost-effectiveness of Xiaomi SU7, Nie Han believes that most consumers opt for Porsche Taycan mainly for its driving experience and brand premium. The driving experience is irreplaceable.

While Xiaomi SU7 might have the price advantage, competing with Porsche in terms of these experiences or luxuries might necessitate more real-world testing and time for accumulation.

Xiaomi SU7 Threat Driving Experience

Moreover, Porsche’s clientele are not solely price-conscious; they value the brand’s significance, driving experience, and the uniqueness of the vehicles. On the other hand, Xiaomi SU7 targets individuals with a certain level of financial capability who value features and aesthetics in their refined lifestyle. These individuals may prefer buying high cost-effective products to obtain a premium quality living experience.

Hence, the launch of Xiaomi SU7 will likely not have a significant impact on Porsche Taycan, considering they cater to entirely different consumer segments.

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