Xiaomi‘s SU7 Electric Sedan Shatters Sales Records, Igniting Market buzz
In a remarkable display of market demand, Xiaomi’s newly released SU7 electric vehicle has achieved unprecedented sales figures, securing 200,000 reservations within just three minutes of it’s launch. Teh momentum continued, with the company reporting up to 289,000 reservations in the first hour, translating to an estimated $8 billion USD in early sales. This surge in demand has also positively impacted Xiaomi’s stock, leading to an 8% increase on the Hong Kong exchange. Further underscoring the SU7’s popularity, over 315,000 orders were placed across 351 physical stores in China within a 72-hour period.
The significant market reception has led analysts to interpret the recent visit of BYD executives, including Chuanfu and jun, accompanied by Geely’s former chief engineer Hu Zhengnan, as a strategic move towards “co-opetition.” This business approach signifies a blend of cooperation and competition between the automotive giants.
This potential collaboration highlights a strategic division of strengths: BYD contributes its expertise in battery technology and powertrain systems, while Xiaomi brings its prowess in automotive intelligence, advanced driver-assistance systems, and integrated IoT ecosystems. In an industry where economies of scale and technological integration are paramount, such a strategic alliance, even if currently informal, could considerably reshape the competitive landscape.
While BYD possesses considerable manufacturing capabilities, including plants like Xi’an with an annual capacity of 900,000 vehicles, the company could stand to gain from Xiaomi’s technological advancements and burgeoning brand appeal. This benefit could be particularly pronounced if Xiaomi successfully expands its automotive presence beyond China, a move anticipated for 2027.
Further Reading: BYD recently unveiled its most powerful engine, boasting 30,511 RPM, surpassing the performance of both Tesla and Xiaomi models.
By Paola Reyes Bohórquez.