Lei Jun Announces Xiaomi SU7’s Annual Delivery Target
On April 23rd, Lu Weibing, President of Xiaomi Group and General Manager of Xiaomi Brand, announced that Lei Jun, Chairman of Xiaomi Group, declared at the Xiaomi Investor Conference today that as of April 20th, Xiaomi SU7’s pre-orders have exceeded 70,000 units. Additionally, Lu Weibing stated that Lei Jun announced Xiaomi’s SU7 delivery target for 2024 to surpass 100,000 units.
Lei Jun also posted on Weibo that Xiaomi’s automotive sector is currently expanding its production capacity at full throttle. The standard and Max versions, initially scheduled for delivery by the end of April, have now been advanced to April 18th.
Previously, there were market rumors suggesting that Huawei’s SmartWorld S7 was “competing” for Xiaomi SU7’s customers. By purchasing the SmartWorld S7 and paying the final installment, customers could deduct the ¥5000 deposit for the Xiaomi SU7 pre-order from the car’s price.
Yesterday afternoon, Lei Jun tweeted that the production capacity and delivery speed of Xiaomi SU7 are rapidly increasing. The standard and Max versions have been delivered ahead of schedule. For users who are urgently seeking to purchase a car, domestic new energy vehicles are also good options, such as SmartWorld S7, NIO ET5, Xiaopeng P7 series, etc.
Furthermore, Lei Jun also mentioned that he will provide detailed information on Xiaomi’s automotive production capacity and delivery plans at the Beijing Auto Show.
Previously, Lei Jun mentioned in a live stream that the core issue with Xiaomi SU7 currently lies in sales exceeding expectations by 3 to 5 times, which is “a very painful” point for them. Lei Jun mentioned that because cars are particularly large, their manufacturing process is extremely complex, involving over 20,000 components from numerous suppliers. The entire factory operates on a highly advanced production model known as Just-In-Time (JIT), where production is based on receiving orders, producing the required quantity within an hour, and all surrounding suppliers produce at a synchronized pace. Additionally, the large components are all sourced within a 50-kilometer radius, making the process of increasing production capacity more complex than anticipated.
Shanghai Securities’ relevant research reports indicate that Xiaomi SU7, as Xiaomi’s first car product, has achieved good order performance. Long-term prospects show that Xiaomi has a solid customer base, with 641 million monthly active users globally, providing Xiaomi’s automotive products with a large potential customer base. In terms of financial strength, Xiaomi has prepared substantial reserve funds for its automotive business. In 2023, Xiaomi Group invested ¥19.1 billion in research and development, with an estimated R&D investment of ¥24 billion in 2024. This reserve of funds ensures the continuous development of product technology and helps Xiaomi’s automotive sector seize market share in intense price competition.
Source: Securities Times