Xiaomi SU7 starts at $21.59K; Top 10 Car Brands Mood Index

In a stunning display that has both industry insiders and consumers buzzing, Xiaomi’s new SU7 model racked up over 50,000 pre-orders within just 27 minutes of its launch. A significant chunk of this success – credit for about 40,000 of those orders – must go to Lei Jun, Xiaomi’s master marketer. True to form, he initially set expectations high, then surprised everyone with a sincerely competitive price, making the offer too good for potential customers to pass up.

Let’s delve into how various competitors might be feeling about Xiaomi’s aggressively priced SU7, listed at an attractive $21,599.

Geely – Half a star – Our strategies can wait; this pricing doesn’t shake us.

Yesterday, many competitors attended Xiaomi’s SU7 launch, including new energy companies and traditional manufacturers like Great Wall Motors and BAIC, but Geely was notably absent. This absence has fueled speculation about a possible rift between Xiaomi and Geely, especially given the latter’s preemptive $320 million subsidy announcement and product price adjustments, clearly aiming to blockade the SU7. Despite these efforts, the SU7’s quick sales show that consumers see it in a league of its own, distinct from Geely’s Galaxy E8 and others. How will Geely respond to this competition now?

Leapmotor – One star – That was a scare!

The release of Xiaomi’s SU7 brings back memories of Xiaomi’s smartphone strategy, obliterating low-cost competitors with unbeatable prices. Brands like Leapmotor, making EVs more accessible, probably breathed a sigh of relief that the SU7 wasn’t priced even lower, which could have significantly impacted their sales.

BAIC – One and a half stars – This puts us in a tough spot

Initially, BAIC seemed unconnected to the Xiaomi SU7 drama, focusing on its collaboration with Huawei to forge ahead in the new energy vehicle (NEV) market. However, the launch of the SU7, boasting a tech giant’s backing and targeting the same luxury segment as BAIC’s new offerings, places BAIC in an awkward position regarding pricing strategies, making them lose the initiative.

NIO – Two stars – What about NIO’s ET5?

At the SU7’s unveiling, all eyes were on the reactions of the attending industry leaders, including NIO’s CEO, who was likely concerned about the impact on their best-selling model, the ET5. With the ET5 priced significantly higher than the SU7, yet now facing tough competition in terms of value for money, NIO may need to rethink its strategies.

Xpeng – Two and a half stars – Thankfully, the P7 is attractively priced

Xpeng, with its P7 model in direct competition with the SU7, remains in a solid position thanks to its competitive pricing strategy, keeping it in a slightly different market segment despite the overlap, allowing for some breathing room.

Tesla – Three stars – How will a $21,000 Model 3 fare in response?

Xiaomi’s SU7 launch didn’t shy away from comparing itself to Tesla’s Model 3, pointing out its more affordable price and luxurious interior. Tesla, accustomed to shaking up the market, could potentially reposition the Model 3’s price to directly compete with Xiaomi’s new entrant.

BYD – Three and a half stars – This doesn’t concern us

Despite the industry stir, BYD remains unaffected. With its strategy of affordability and no C-segment offerings comparable to Xiaomi’s SU7, BYD continues to focus on dominating the broader auto market.

Zhiji – Four stars – Thank you for not setting the bar at $18,000

Zhiji’s L6 may not feel a direct hit from Xiaomi’s pricing strategy, but the difference in strategy and market expectations between the two brands is clear, with Zhiji benefiting from Xiaomi not pushing the price even lower.

Li Auto – Four and a half stars – Good thing Xiaomi chose a sedan

Li Auto’s relief that Xiaomi’s SU7 is a sedan and not an SUV like its L6 model allows them to breathe easier, maintaining their hold in their market segment despite Xiaomi’s competitive pricing.

Zeekr – Five stars – Thanks for the push in attention

Zeekr, seen as the biggest winner, capitalized on the situation by positioning itself as a high-value alternative in face of Xiaomi’s pricing strategy. With its technical prowess and styling, Zeekr finds itself well-equipped to attract those initially eyeing Xiaomi’s new offering.

This diverse reaction from competitors shows the dynamic shifts and strategy recalibrations brewing in the auto industry following Xiaomi’s bold move with the SU7.

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