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  • Production of the Xiaomi SU7 could reach 150,000 units by 2025
    22 4月 2024
    The Chinese smartphone producer Xiaomi presented its first car, the SU7 (“Speed Ultra” 7), a battery electric D-segment sedan which openly competes with the Tesla Model 3, also from the D segment, sold at 300 000 units in China last year and more than a million since its launch in the country in 2020. The Tesla Model 3 is thus the seventh best-selling car in China in 2023 and the Xiaomi SU7 dreams of taking its place.
    The Xiaomi SU7 will be produced by the Chinese carmaker BAIC Motor in one of its factories located in Beijing at the rate of 100,000 units per year, but the level of orders having already exceeded this production capacity, BAIC Motor will have to increase it (we are talking about 120,000 units for the second half of 2024 and 150,000 units in 2025), to reduce delivery times which today reach between six and eight months depending on the versions.
    The Xiaomi SU7 is based on the “Modena” platformand has an electric motor of 295 hp (220 kW) in the rear-wheel drive version and 665 hp (495 kW) in the all-wheel drive version. The battery has a capacity of 74 kWh, 94 kWh or 101 kWh depending on the version chosen by the customer. The carmaker announces a range of between 700 km and 800 km depending on the CTLC cycle.
    In terms of performance, the Xiaomi SU7 intends to position itself at the level of the Porsche Taycan (265 km/h for the most powerful version) for half the price. But the boss of Xiaomi himself admitted that the company was losing money on each car sold, and that massive price increases would undoubtedly be necessary in the coming months.
    Click here to read another analysis related to this topic:
  • Do vehicles marketed by smartphone companies have a future?
    12 4月 2024
    Chinese smartphone makers, such as Huawei and Xiaomi, have started investing in the automotive sector. Their expertise in high-technologies and experience manufacturing consumer products could potentially give them a competitive advantage in the automotive sector. However, it is important to note that the automotive industry is very complex and competitive, with many established players and strict regulations to follow. Traditional carmakers have a long history, technical expertise and well-established manufacturing infrastructure, giving them a significant competitive advantage. Also the trend is for smartphone producers to create a strong partnership with an existing automobile carmaker rather than creating a new vehicle on their own. The smartphone company Huawei thus made a partnership in 2021 with the carmaker Seres. Together they developed the range of AITO models (see below). In February 2023, Huawei and Seres further strengthened their alliance by signing a new contract to develop a new flagship BEV vehicle. The objective is to produce one million vehicles by 2026.
    For its part, the smartphone company Xiaomi, after exploring the route of building a vehicle on its own (SU7 – see photo below), sought to establish an association with an automobile carmaker. Production of the Xiaomi SU7 will initially be carried out at BAIC.
    For the moment, we can only observe the evolution of sales of AITO, the only brand linked to a Chinese smartphone carmaker (Huawei) currently in activity, before the arrival of Xiaomi. Produced by the Seres group (formerly Sokon), AITOs increased from 78,000 sales in China in 2022 to 104,000 in 2023 and potentially more than 300,000 in 2024 (59,000 sales over 2 months 2024). But at the same time, sales of Seres brand models fell from 109,000 in 2022 to 68,000 in 2023 and potentially less than 100,000 in 2024 (15,000 sales over 2 months 2024). It thus seems that the AITO brand has replaced the Seres brand and that it is starting to take market share to the competition from 2024. The sales potential in 2024 for the AITO and Seres brands reaches 400,000 sales, or 2.3 times the cumulative volume of 2023 and 2.1 times the cumulative volume of 2022. In 2021, the AITO brand did not yet exist and neither did the Seres brand.
    Here is a video about the AITO car display in a Chinese store selling smartphones:


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Extract #1
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