Vị doanh nhân 54 tuổi nổi tiếng với triết lý kinh doanh ‘lợn bay’ thề khởi nghiệp lần cuối với xe điện, vừa mở bán 30 phút đã có 50.000 đơn đặt hàng

Xiaomi, the renowned 54-year-old entrepreneur with a “flying pig” business philosophy, has ventured into the crowded electric vehicle market in China. Surprisingly, the company announced that it sold about 50,000 cars in just 30 minutes after launching its new model, the SU7.

Xiaomi Challenges Tesla with Electric Cars

After years of competition with Apple in the smartphone market, Xiaomi is now going head-to-head with Tesla, led by Elon Musk. During the unveiling of the SU7 model, Lei Jun, the chairman of Xiaomi, revealed three variations of the car: SU7, SU7 Pro, and SU7 Max, with prices starting from 215,000 NDT (29,867 USD). The introduction of the new car is expected to intensify the price war in the Chinese market, where BYD, Xpeng, Nio, and Tesla are all striving to win over Chinese consumers.

Despite the competitive landscape, Xiaomi is poised for success in the market. “Xiaomi has set the floor price for the global electric car market while still offering outstanding features,” said Tu Le, Managing Director of Sino Auto Insights, a consulting firm.

Xiaomi has garnered consumer interest in its new SU7 model by carefully revealing detailed information about the car while keeping the price secret until the launch. During the unveiling event, Lei, dressed in professional attire instead of the typical jeans and t-shirt inspired by Steve Jobs, created a buzz similar to Elon Musk. The live-streamed event attracted millions of viewers and received over 10,000 pre-orders within just four minutes.

Lei revealed that the new car model boasts a range of 700 km (440 miles), which compares favorably to Tesla’s Model 3, and even surpasses it in 90% of the technical specifications. Moreover, the starting price of the SU7 is significantly lower than the Model 3, at approximately 36,000 NDT.

Competitive Electric Vehicle Market in China

The competition in the world’s largest electric vehicle market is becoming increasingly fierce, especially as the pace of electric car purchases slows down. Previously, the market was driven by generous government subsidies.

BYD, the largest electric car manufacturer in the world, known for its affordable vehicles, reduced the prices of over 100 car models in March compared to December. The best-selling sedan, Qin Plus, experienced a 20% price reduction – the largest discount in the current round of price reductions – and now has a starting price of 79,800 NDT.

Xpeng, another electric vehicle manufacturer, also extended a 20,000 NDT discount for its best-selling electric SUV, the G6, until the end of March. It is now priced at 189,900 NDT, following a significant decline in deliveries in February, the lowest in three years.

Tesla, the leader in the premium electric vehicle segment in China, also launched a sales campaign in March. The American electric vehicle manufacturer offers an 8,000 NDT subsidy for customers who purchase auto insurance from its partners until the end of March.

Furthermore, the Chinese automotive market has seen a decline in consumer car-buying sentiment due to the weakened post-Covid economy.

According to the China Association of Automobile Manufacturers, the annual sales volume of new energy vehicles in China, including electric and plug-in hybrid cars, is projected to increase by 22% by 2024, reaching 11 million units. However, this growth rate is lower than the 36% growth achieved in 2023, when 7.7 million units were sold.

Amidst this challenging market, Xiaomi’s car project represents the final business venture for CEO Lei Jun. However, the company faces difficulties in development due to the intense price competition and the overwhelming number of options available to consumers.

While electric cars currently account for about one-third of new car sales in the world’s largest automotive market, analysts and executives predict a consolidation phase will occur, involving both traditional automakers and new market entrants.

In the United States and Europe, concerns have been raised that as domestic demand slows down in China, the country’s electric vehicle export wave will flood international markets, leading to concerns about unfair trade practices and national security.

It only took Xiaomi three years to bring its first car to market, showcasing the rapid development in China’s fiercely competitive and leading electric vehicle industry. This success mirrors the excitement surrounding the market share race among technology companies.

Another major Chinese smartphone manufacturer, Huawei, has also gained traction with its Aito brand, with its M7 model ranking fourth in the best-selling electric car category in China this year.

Li Yanwei, a member of the China Automobile Dealers Association Expert Committee, highlighted that Xiaomi faces significant challenges from traditional automakers such as Tesla, BMW, BYD, and Geely’s Zeekr, all of whom have implemented multiple price reductions. Li noted, “These companies leave little room for the SU7.”

However, CEO Lei Jun stated that the SU7 is positioned as a “dream car” competing with Tesla and Porsche, and it has the potential for faster acceleration. Lei has committed to investing $10 billion in the electric car project over the next decade, aiming to be one of the top five global automakers within 15 to 20 years. Lei said, “Xiaomi Auto is striving to enhance the position of China’s automotive industry.”

“Chinese companies are not afraid to try new things, while giants like Apple are too large to make quick decisions,” remarked Tycho de Feijter, an expert in the Chinese car market at the Clingendael research organization in the Netherlands.

Xiaomi’s five-seater car boasts a proprietary operating system that connects with smartphones and household appliances such as air conditioners and rice cookers. This allows users to control various devices while on the move.

Yale Zhang, founder of Automotive Foresight, a Shanghai-based consulting firm, emphasized that a company with an established smartphone product and a self-developed operating system has a clear advantage in terms of vehicle connectivity.

CEO Lei Jun’s own success story with smartphones highlights the accuracy of his “seizing opportunities” philosophy. In just five years, Xiaomi went from a startup to becoming the world’s most valuable privately-held technology company, according to The Wall Street Journal.

Lei had once shared his success strategy, simplifying it to “even a pig can fly if it stands in the center of a tornado,” illustrating the company’s rapid growth.

Source: SCMP