Since the onset of the pandemic in 2020, the competition within the Chinese automotive market has intensified exponentially each year. The price wars of the past two years have further escalated the intensity of rivalry.
Amidst this backdrop, a new entrant, Xiaomi Automobile, has captured significant attention. Xiaomi brand, since its inception in 2011, swiftly captured a substantial market share and has risen to become one of the leading mobile phone brands in the country.
Xiaomi Automobile gained market prominence with the launch of its first New Energy Vehicle (NEV), the Xiaomi SU7, in 2023. The debut of the SU7 signifies the official foray of the tech giant, Xiaomi, into the automotive sector, signalling a new shift in the competitive dynamics of the auto market. With its outstanding performance, innovative technological features, and competitive pricing, the SU7 has rapidly garnered widespread attention in the market. This development not only presents new challenges to established automakers but also offers consumers a broader range of choices and new possibilities.
The SU7, officially released in March 2024, has seen a steady increase in sales. From March to October, the monthly wholesale volume surged from 4,000 units to over 20,000 units in just eight months. Comparatively, the Aito M7, from another well-known mobile phone manufacturer in the same price segment, took eighteen months to achieve the same sales volume level. Moreover, Xiaomi's direct store sales model keeps retail volumes close to wholesale numbers, resulting in minimal market inventory.
In the Fullsize and above Sedan segment, the SU7's market share leaped from 4% in March to 17% in October, an impressive growth trajectory.
What are the key features of Xiaomi SU7 that make it stand out?
The SU7 stands out with several key features that position it as a competitive player in the Chinese Electric Vehicle (EV) market.
First, Xiaomi has effectively utilized its accumulated brand reputation. Before the release of the SU7, Xiaomi already had 100 million mobile phone users in China, a user base that other companies cannot help but envy. There are only a handful of companies in the automotive industry that can accumulate more than 10 million users.
These users' awareness and trust in the Xiaomi brand have laid a solid foundation for the hot sales of the SU7. Moreover, its unique appearance, design and precise product positioning are also a major contributor to the rapid increase in its product sales.
Secondly, the SU7 has demonstrated strong product strength in terms of performance, battery life and intelligence. Xiaomi Auto's heavy investment in technology, research and development - including full-stack self-developed intelligent driving technology, high-quality components and advanced technology applications - has given the SU7 a competitive advantage in the market. The SU7 offers a range of motor power from 220 kW to 495 kW (299 to 673 horsepower) and can achieve a top speed of 164.7 mph (265.0 km/h), with an acceleration from 0 to 100 km/h in just 2.78 seconds. It features a self-developed CTB Integrated Battery Technology with a maximum capacity of 150 kWh, allowing for a range of up to 1,200 km on a single charge. The battery also includes a 14-layer robust physical protection system and dual-side water cooling solution for safety and stability. The SU7 employs three key technologies for autonomous driving: Adaptive BEV Technology, Road-Mapping Foundational Model, and Super-Res Occupancy Network Technology, focusing on perception algorithms and expanded recognition ranges. The SU7 features a modern interior with a 56-inch head-up display (HUD), a driving position designed for comfort and safety, and a spacious cabin with a 3,000 mm wheelbase providing ample head and legroom.
As the SU7 is deeply integrated into the Xiaomi ecosystem, it enjoys native pairing with Xiaomi smartphones, tablets, and home appliances, facilitating seamless connectivity and control. Xiaomi Auto's pioneering "people, cars, and homes" concept represents an intelligent ecosystem that fully interconnects individuals, vehicles, and residences, enabling the smooth connection and real-time collaboration of hardware devices.
Leveraging the connectivity features of Xiaomi's Hyper OS, the vehicle's infotainment system offers a fluid experience, allowing for deep interaction with mobile devices, in-car displays, and smart home devices, thus creating a totally new cockpit environment. Users of the SU7 can utilize its smart cockpit system to remotely manage their home's smart devices, which also come from the Xiaomi product ecosystem. For instance, while enroute to their home, users can pre-activate air conditioning, robotic vacuum cleaners, and other smart home appliances via the car's infotainment system. Additionally, users can pre-configure "geo-fences" that, once the vehicle enters the vicinity of their home, automatically trigger the home mode, thereby linking and activating the smart devices within the home environment.
These features collectively contribute to the SU7's appeal in the market, offering a blend of performance, technology, and connectivity that is well-aligned with the brand's reputation for innovation and value.
The success of the SU7 indicates that the pattern of China's automobile market is quietly changing. Xiaomi, with its deep accumulation in the field of mobile internet, has successfully brought the concept of "smart mobile terminal" into the automobile industry. Unlike traditional automobile companies, Xiaomi focuses on intelligent design, integrates its completely smart product ecosystem, and continues to work hard on autonomous driving technology. Its cost-effective advantages in configuration and battery life have made the SU7 attractive to many young consumers, marking Xiaomi's official layout in the field of NEVs.
The rise of the SU7 is not only a successful case in the domestic automobile market of China, but also has a profound impact on the global automobile industry. The possibility of technology companies entering traditional industries has been confirmed again. The rise of Tesla has changed people's traditional concept of the automobile industry, and the entry of Xiaomi has further promoted the process of integration in technology and automobiles. Through the leading advantages in intelligence and internet technology, technology companies are redefining the functions of automobiles. In the future, cars will not only be a means of transportation but are more likely to become smart mobile terminals.
The SU7 has triggered a revolution in China's Mid-to-Large Sedan market, putting pressure on Mercedes-Benz, BMW and Audi, which has long dominated this market segment. At the same time, consumers of traditional Premium brands are gradually changing their mindsets.
Moreover, the brand ecological chain concept pioneered by Xiaomi has also been deeply rooted in the automotive field. Thanks to the brand effect and user base accumulated by Xiaomi in the fields of smartphones and smart homes, and through the collaboration with Xiaomi ecological products, the SU7 has achieved resource sharing and complementarity, and strengthened the brand ecological advantages.
Looking ahead, the market segment of Fullsize Sedans is likely to undergo major changes. Although traditional premium brands such as Mercedes-Benz, BMW and Audi still have a place in the market, with the rise of emerging brands, the competition landscape of the entire market will become more diversified. Not only in the Premium Car market, but also in various market segments, consumers' choices will be increasingly driven by technology and smart experience.
Nan Zhang, Passenger Car Market Analyst, Asia Forecasts, GlobalData
This article was first published on GlobalData’s dedicated research platform, the Automotive Intelligence Center .
"Xiaomi SU7: a game changer in the Chinese auto market" was originally created and published by Just Auto , a GlobalData owned brand.
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