The launch price announcement of Xiaomi’s SU7 has sparked a nationwide frenzy.
Official figures reveal that “within 4 minutes of opening pre-orders for the Xiaomi SU7, over 10,000 orders were placed, doubling to 20,000 in 7 minutes, and reaching a staggering 50,000 orders in just 27 minutes!” This is indeed astonishing, resembling smartphone sales rather than that of cars. It’s crucial to note that Xiaomi’s hefty pre-orders come with a twist: they can be canceled within 7 days, after which the order automatically becomes non-refundable.
However, complaints about being unable to refund the deposit began surfacing on consumer rights platforms on the second day after the launch, despite attempts to cancel orders.
In response, Xiaomi stated that deposits are refundable without a reason within 7 days. Beyond that, if the order locks automatically or the buyer decides to lock the car configuration ahead of time, the car moves to production, making changes to the configuration or refunding the deposit impossible. Notably, the special edition’s configuration is fixed upon a CNY 20,000 deposit, making the order unchangeable.
Some consumers argued they had “accidentally locked in their order,” claiming that Xiaomi’s car purchasing process on their app lacked clear warnings, misleading consumers and impacting their rights. Review of the app by “Auto Industry Focus” confirms that upon confirming the purchase, the deposit information clearly states that the order becomes non-refundable once the car goes into production.
This situation has led to a flurry of online discussions, making Xiaomi cars a hot topic again.
Moreover, “Auto Industry Focus” observed that some are even reselling their Xiaomi SU7 pre-orders at a premium on secondary markets.
This indicates that not all of Xiaomi SU7’s impressive 50,000 pre-orders from the launch might convert into sales. Therefore, the genuine interest and eventual sales figures will only become clear after the 7-day refund period has concluded.
On March 28th, during the Xiaomi cars launch event, Lei Jun, the founder, chairman, and CEO of Xiaomi Group, announced that the SU7 would start at CNY 215,900 for the standard model, with the Pro and Max versions priced at CNY 245,900 and CNY 299,900 respectively.
The launch event, dubbed by some as the “automotive Spring Festival Gala,” featured top executives from various auto manufacturers, enhancing its glamour. However, the announced prices elicited notably amusing reactions from industry leaders like Li Bin and He Xiaopeng, who were present to show their support.
The Xiaomi SU7’s immediate popularity can be attributed to Xiaomi’s background, marketing efforts, and pricing strategy. Leveraging its robust software and hardware development capabilities and a vast user base, Xiaomi’s first car model has garnered much attention. Lei Jun’s strategic pre-launch teasers significantly hyped the car. He emphasized the SU7’s luxury and top-notch features, suggesting that despite a higher price, the value offered would make it a worthwhile investment. Lei Jun’s comparisons of the SU7 with high-end brands like Porsche and Tesla set high expectations for the car’s capabilities and value for money.
Lei revealed post-event that selling the SU7 at its announced price point would result in losses for Xiaomi but stated it was a calculated move to deliver value to loyal Xiaomi fans. Despite the strong start, the automotive journey for Xiaomi’s SU7 has just begun, and whether it can sustain its initial success amidst fierce competition remains to be seen.
Given Xiaomi’s inexperience in manufacturing—a field far more complex than its traditional electronics focus—the challenge is significant. The SU7 faces competition not only from electric vehicle pioneers like Tesla but also from emerging brands and established automakers, setting the stage for an intense rivalry in the high-demand price range of CNY 200,000 to CNY 300,000. As Lei Jun puts it, “The long journey has just begun” for Xiaomi in the automotive world.