Since the start of the pandemic in 2020, competition in the Chinese car market has increased exponentially every year. The price wars of the past two years have further escalated the intensity of the rivalry.
Against this backdrop, a newcomer, Xiaomi Automobile, has attracted a lot of attention. The Xiaomi brand has quickly captured a substantial market share since its inception in 2011 and has become one of the leading mobile phone brands in the country.
Source: GlobalData
Xiaomi Automobile rose to prominence in the market with the launch of its first New Energy Vehicle (NEV), the Xiaomi SU7, in 2023. The debut of the SU7 marks tech giant Xiaomi’s official foray into the automotive sector and heralds a new shift. in the competitive dynamics of the automotive market. With its excellent performance, innovative technological features and competitive prices, the SU7 has quickly gained widespread attention in the market. This development not only presents new challenges for established car manufacturers, but also offers consumers a wider range of choices and new possibilities.
Officially released in March 2024, the SU7 has seen a steady increase in sales. From March to October, monthly wholesale volume increased from 4,000 units to more than 20,000 units in just eight months. For comparison, the Aito M7, from another well-known mobile phone manufacturer in the same price segment, took eighteen months to reach the same sales volume. Furthermore, Xiaomi’s direct store sales model keeps retail volumes close to wholesale numbers, resulting in minimal market inventory.
Source: GlobalData
In the Fullsize and above Sedan segment, the SU7’s market share rose from 4% in March to 17% in October, an impressive growth trajectory.
Source: GlobalData
What are the key features of Xiaomi SU7 that make it stand out?
The SU7 stands out with a number of key features that position it as a competitive player in the Chinese electric vehicle (EV) market.
Firstly, Xiaomi has effectively leveraged its built-up brand reputation. Before the release of the SU7, Xiaomi already had 100 million mobile phone users in China, a user base that other companies could only envy. There are only a handful of companies in the automotive industry that can amass more than 10 million users.
The awareness and trust of these users in the Xiaomi brand have laid a solid foundation for the good sales of the SU7. Moreover, the unique appearance, design and accurate product positioning also make a significant contribution to the rapid increase in product sales.
Secondly, the SU7 has shown strong product strength in terms of performance, battery life and intelligence. Xiaomi Auto’s heavy investments in technology, research and development – including full-stack self-developed intelligent driving technology, high-quality components and advanced technology applications – have given the SU7 a competitive advantage in the market. The SU7 offers an engine power of 220 kW to 495 kW (299 to 673 hp) and can reach a top speed of 265.0 km/h, with acceleration from 0 to 100 km/h in just 2.78 seconds. . It has a self-developed CTB Integrated Battery Technology with a maximum capacity of 150 kWh, allowing a range of up to 1,200 km with one charge. The battery also includes a robust 14-layer physical protection system and double-sided water cooling for safety and stability. The SU7 uses three key technologies for autonomous driving: Adaptive BEV Technology, Road-Mapping Foundational Model and Super-Res Occupancy Network Technology, with an emphasis on perception algorithms and extended 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 that provides ample head and legroom.
Because the SU7 is deeply integrated into the Xiaomi ecosystem, it features native pairing with Xiaomi smartphones, tablets and home appliances, enabling seamless connectivity and control. Xiaomi Auto’s pioneering “people, cars and homes” concept represents an intelligent ecosystem that fully connects individuals, vehicles and homes, enabling smooth connection and real-time collaboration between hardware devices.
Leveraging the connectivity features of Xiaomi’s Hyper OS, the vehicle’s infotainment system provides a fluid experience, enabling deep interaction with mobile devices, in-car displays and smart home devices, creating a completely new cockpit environment. Users of the SU7 can use the smart cockpit system to remotely manage their home’s smart devices, which also come from the Xiaomi product ecosystem. For example, while on the way home, users can pre-activate air conditioning, robot vacuum cleaners and other smart home appliances via the car’s infotainment system. In addition, users can pre-configure ‘geo-fences’ that, once the vehicle comes close to their home, will automatically activate home mode, linking and activating the smart devices in the home environment.
These features collectively contribute to the SU7’s market appeal, offering a blend of performance, technology and connectivity that aligns well with the brand’s reputation for innovation and value.
The success of the SU7 indicates that the pattern of the Chinese car 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 automotive industry. Unlike traditional car companies, Xiaomi focuses on intelligent design, integrates its fully smart product ecosystem and continues to work hard on autonomous driving technology. The cost-effective advantages in terms of configuration and battery life have made the SU7 attractive to many young consumers, marking Xiaomi’s official lay-out in the field of NEVs.
The rise of the SU7 is not only a successful example in China’s domestic auto market, but also has a profound impact on the global auto industry. The possibility of tech companies entering traditional industries has been reaffirmed. The rise of Tesla has changed the traditional concept of the automotive industry, and the arrival of Xiaomi has further promoted the integration process in technology and cars. With leading advantages in intelligence and internet technology, technology companies are redefining the functions of cars. In the future, cars will not only be a means of transportation, but they will probably also become smart mobile terminals.
The SU7 has revolutionized China’s mid-to-large sedan market, putting pressure on Mercedes-Benz, BMW and Audi, which have long dominated this market segment. At the same time, consumers of traditional premium brands are gradually changing their mindset.
In addition, the brand’s ecological chain concept, developed by Xiaomi, is also deeply rooted in the automotive sector. Thanks to the brand effect and user base that Xiaomi has built in the field of smartphones and smart homes, and through the cooperation with Xiaomi’s ecological products, the SU7 has achieved resource sharing and complementarity and strengthened the brand’s ecological advantages.
Looking ahead, the Fullsize Sedan market segment is likely to undergo major changes. While traditional premium brands such as Mercedes-Benz, BMW and Audi still have a place in the market, with the rise of emerging brands, the competitive landscape of the entire market will become more diverse. Not only in the Premium Car market, but also in various market segments, consumer choices will increasingly be determined by technology and smart experiences.
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 Gamechanger in the Chinese Car Market” was originally created and published by Just Auto, a brand owned by GlobalData.
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