Both Xiaomi and its founder, Lei Jun, are big fans of Apple. The Chinese smartphone maker embraces Apple-like designs in its products and advertising, leading some to dub the company “the Apple of China.” And you cite Steve Jobs as an inspiration, saying that the 1984 book Fire in the valley set him on the path to launching his own company.
And so it wasn’t a huge surprise when, in March 2021, Xiaomi announced it would be entering the electric vehicle business, following Apple’s 2014 decision to explore building a car. At the time, Xiaomi promised to spend $10 billion over 10 years to finally offer “quality smart electric vehicles.”
But now Apple’s car plans are reportedly dead, with the US tech company instead shifting staff to artificial intelligence projects.
The man behind the “Apple of China” said he was “shocked” by Apple’s decision, in a post on Wednesday on the Chinese social media platform Weibo. He continued by saying that Xiaomi made a “strategic choice” to invest in electric vehicles and that the company remains committed to the project, despite the difficulties.
In December, Lei told state broadcaster CCTV that Xiaomi dedicated 3,400 engineers and 10 billion Chinese renminbi ($1.4 billion) to the company’s first prototype vehicle. She noted that the overall investment was 10 times what automakers typically dedicate to new models.
Xiaomi can enter the automotive market because electric vehicles combine elements of both traditional automobiles and consumer electronics, Lei said at the time.
The smartphone maker unveiled its first electric vehicle, the SU7 electric sedan, in late December. The car made its first public appearance at the Mobile World Congress in Barcelona this week.
Domestic deliveries could start as early as the second quarter of the year, Xiaomi Group President Weibing Lu said CNBC. The company hasn’t revealed pricing yet, but Lu said a formal release is coming “very soon.” The company is targeting the premium market, which Lu described as a good starting point given Xiaomi’s experience selling smartphones to “20 million premium users.”
Chinese consumers have adopted electric vehicles at a rapid pace in recent years, helping companies like BYD and Li Auto generate record sales. But Xiaomi will try to enter the world’s largest electric vehicle market just as the pace of growth begins to slow and as other electric vehicle makers become mired in fierce price wars to capture more market share.