Both Xiaomi and its founder Lei Jun are big fans of Apple. The Chinese smartphone maker uses Apple-like designs in its products and advertising, prompting some to do so You b the company “the apple of China”. And Lei quotes Steve Jobs The book from 1984 serves as inspiration Fire in the valley set him on the path to starting his own company.
And so it wasn't a big surprise when in March 2021 Xiaomi announced After Apple's decision in 2014 to consider building a car, it entered the electric vehicle space. At the time, Xiaomi promised to spend $10 billion over 10 years to eventually offer “high-quality smart electric vehicles.”
But now Apple's car plans are ready allegedly dead, instead the US technology company is shifting staff to AI projects.
The man behind the “Apple of China” said he was “shocked” by Apple's decision, in a Wednesday post on Chinese social media platform Weibo. He continued that Xiaomi has made a “strategic decision” to invest in electric vehicles and that the company remains committed to the project despite the difficulties.
In December, Lei said State broadcaster CCTV that Xiaomi spent 3,400 engineers and 10 billion Chinese renminbi ($1.4 billion) on the company's first vehicle prototype. He noted that the total investment is 10 times higher than what automakers typically spend on new models.
Xiaomi could break into the car market because electric vehicles combine elements of both traditional automobiles and consumer electronics, Lei said at the time.
The smartphone manufacturer revealed At the end of December its first electric vehicle, the SU7 electric sedan. The car made its first appearance public appearance this week at the Mobile World Congress in Barcelona.
Domestic deliveries could begin as early as the second quarter of the year, said Xiaomi Group President Weibing Lu told CNBC. The company hasn't announced a price yet, but Lu said a formal release will come “very soon.” The company is targeting the premium market, which Lu said was 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, which has helped companies BYD And Li car Achieve record sales. But Xiaomi will look to enter the world's largest electric vehicle market as the pace of growth picks up slow it downand as other electric vehicle manufacturers engage in bitter price wars to capture more market share.