Xiaomi SU7 Shakes Auto Market! Competitors Cut Prices – Lei Jun’s Goal?

Xiaomi’s Impact on the Automobile Market – Shaking Up Competitors and Cutting Prices

Perhaps not even the most loyal Mi fans could have anticipated that Xiaomi would enter the automotive industry with such vigor! The recent launch of the Xiaomi SU7 has prompted competitors to take action swiftly – primarily by cutting prices. Their responses have been coordinated and substantial, far surpassing the reactions seen after the Chinese New Year from BYD, Qiyuan, and Wuling. Netizens are commenting that whenever Xiaomi makes a move, the entire new energy vehicle industry is turned upside down by Lei Jun’s influence.

And this perception of netizens is not without merit.

Xiaomi SU7

A new version of the Avita 12 with a range of 700 km has been released, with a starting price slashed by a whopping 35,000 yuan. Other models have also seen reductions of up to 22,000 yuan, with the latest prices dipping below the 280,000 yuan mark. The momentum is evident. Jike, following a similar strategy, introduced the enhanced rear-wheel-drive version of the Jike 007 priced at 209,900 yuan, directly targeting the Xiaomi SU7.

Xiaomi SU7

Meanwhile, Geely has not remained idle. On March 28th, even before the end of the Xiaomi event, Geely released a poster stating, “As we all know, 8 is greater than 7”, with a subtle implication that their Geely Galaxy E8 is larger in size, screen, system, and offers greater discounts compared to the Xiaomi SU7. The guiding price has certainly become more budget-friendly. Hence, it is clear that the “Geely camp” is not backing down in this price war but is determined to give Xiaomi a tough competition.

Xiaomi SU7

Moving on to Cadillac, their eye-catching “Coconut Tree Wind” billboard starts with “Sorry, Thunder God” on each comparison, highlighting the advantages of IQ Proud Songs over the Xiaomi SU7 in terms of configuration. It comes off as a critique combined with sarcasm, essentially tarnishing Xiaomi SU7’s reputation. However, this provocative approach seems to have attracted more criticism than praise, with many pointing out that Cadillac’s tactics are too aggressive and akin to public mudslinging. It appears they have closely studied Xiaomi’s playbook and put it into practice.

Xiaomi SU7

Furthermore, the price cuts by Wanjie’s new M7, limited-time offers for Xiaopeng’s M9, FAW-Volkswagen’s additional subsidies, and Chery’s billions of subsidies renewal policy indicate that a significant number of car manufacturers have joined the price reduction trend. Not only new energy vehicle companies are participating, but also some traditional fuel vehicle companies and models. As mentioned earlier, Xiaomi’s disruption this time around has substantial ramifications, dwarfing even the Honor Edition models.

Xiaomi SU7

This has led netizens to call out Lei Jun directly, urging him not only to shake up the automotive industry but also to disrupt other sectors like cameras, real estate, and more. From a certain perspective, this big boss has transitioned from “Thunder God” to “Thunder Saint,” and Xiaomi has become the newfound wish fountain for netizens. This trend stems from Xiaomi’s legacy of offering high performance at low prices, starting from Redmi smartphones to televisions, smart home products, and now cars. This cost-effectiveness has resonated with consumers, earning Xiaomi praise and instilling fear in competitors.

Xiaomi SU7

However, it might be premature to declare Xiaomi SU7’s success. While the number of orders is significant, the actual conversion rate needs validation, ensuring that sales continue to rise. Currently, production capacity remains limited, resulting in higher costs. Once production capacity increases, costs are expected to decrease significantly. As it is commonly understood, the larger the scale, the greater the ability to control costs within the supply chain.

Nevertheless, Xiaomi SU7 has already achieved its secondary goal – elevating the overall configuration and making prices more reasonable in the Chinese automotive market. Let’s wait and see how long Xiaomi Cars can keep everyone “intoxicated” with this potent brew.

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