Xiaomi Shatters EV Production Goals, Aims to Double Output As New Models Challenge Tesla
Xiaomi Automobile, originally established as an electric vehicle (EV) division by Chinese tech giant Xiaomi Inc., known primarily for its smartphones, has been making striking advances in the competitive EV market. Launched just three years ago, the division has quickly escalated its production capabilities and market presence.
Recently, Xiaomi hit a significant production landmark, successfully assembling 100,000 vehicles this year, achieving this goal two months ahead of its initial schedule. Lei Jun, the founder, chairman, and CEO of Xiaomi, confirmed via Weibo that this ramp-up was complete and projected reaching this milestone by as early as November. Based on current rates, it’s forecasted that Xiaomi could manufacture up to 120,000 units in just six months from the start of the year.
The market’s response to Xiaomi’s EVs has been robust. Its first battery electric vehicle model, the SU7, was launched at the tail end of 2023 and quickly garnered intense consumer interest. The vehicle, a strategic entry into the EV space, saw over 50,000 orders within the first 27 minutes of its launch. Initially, Xiaomi had planned to produce 60,000 units of the SU7 for the year. However, due to the surge in demand, production capacities were expanded accordingly.
In addition to scaling production, Xiaomi is ambitiously broadening its product lineup. Plans are underway to introduce a high-performance version of the SUV, the ‘SU7 Ultra,’ which boasts 1,548 horsepower, with a launch anticipated in early 2025. Furthermore, another model in development is set to directly compete with Tesla’s Model Y, emphasizing Xiaomi’s strategic aims to carve out significant market space in the EV industry.
In preparation for increased demand and to enhance customer service, Xiaomi aims to expand its infrastructure substantially by the end of 2024. The expansion plan includes increasing the number of sales stores to 220, service centers to 135, and delivery hubs to 53, across 59 cities. The current network includes 93 sales stores, 57 service centers, and 30 delivery hubs spread across 31 cities in China.
Xiaomi initially equipped its production lines to handle a capacity of 10,000 vehicles per month starting from May of the reporting year. This rapid scale-up in production capabilities underscores Xiaomi’s serious commitment to not just competing but leading in the EV market.
Projections based on the current trends suggest that, while the final production figures for the year will be confirmed later, Xiaomi Automobile is on track to end up producing between 100,000 to 120,000 units of the SU7. This marks a significant chapter in Xiaomi’s evolution from a smartphone manufacturer to a formidable player in the global electric vehicle market. The achievements of Xiaomi Automobile highlight not only the rapid development and adaptability of the company but also signify emerging shifts in the automotive industry, challenging established players and opening new avenues for innovation and market dynamics.
