- CHINA'S XIAOMI SHAKES UP ELECTRIC CAR MARKET WITH AFFORDABLE SU7

Chinese smartphone company Xiaomi is experiencing unexpected success with its new electric car, as reported by CNBC, leading to an earlier-than-anticipated break-even point - despite its cheaper selling price compared to Tesla's Model 3.

Xiaomi reaches break-even point sooner than expected with SU7

When Xiaomi launched its electric car SU7, CEO Lei Jun predicted the company would sell each car at a loss. However, the numbers now tell a different story. On Tuesday (local time), the top executive estimated that the gross profit margin for Xiaomi's automobile business could be around five to ten percent.

Xiaomi has heavily invested in its electric car venture as the corporation aims to be one of the top five automobile manufacturers worldwide. According to CNBC, Xiaomi had received more than 70,000 orders for its SU7 by April 20. This almost matches the company's original annual target for the entire year of 2024.

Xiaomi now plans to deliver 100,000 new electric vehicles this year, about 40 percent more than originally expected. Citibank analysts estimate that the company will reach the break-even point once it achieves annual sales between 300,000 and 400,000 units.

Xiaomi initially only sells the SU7 in China

For the next three years, Xiaomi plans to focus solely on the domestic market in China. "We have influence over more than 100 countries worldwide and a solid base of Xiaomi fans. When we are ready to enter the global market, that will naturally happen," Lei Jun said.

In 2023, Xiaomi achieved a global turnover of approximately 38.2 billion dollars.

2024-04-24T09:25:17Z dg43tfdfdgfd