Smartphone maker Xiaomi has become the China’s eighth-largest electric vehicle upstart after selling more than 7,000 units of its first model SU7 sedan, after the launch in April, according to industry data. The entry of Xiaomi in China which already has a crowded EV market has been strong and is set to further upend the world’s largest auto market. This is where companies have been locked in a fierce price war amid weakening demand.
Already a household name in China, Xiaomi is popular for smartphones and home appliances.
Xiaomi in electric vehicle market
Xiaomi joins other upstarts like Nio and Xpeng in electric vehicle market as new automakers focused on electric vehicle production. The category excludes legacy brands like Volkswagen and established EV makers such as Tesla, BYD and Geely.
Xiaomi SU7 launch
Xiaomi EV sold 7,058 of SU7s in April in China, its first full monthly sales since the model was launched in late March, and it is targeting more than 100,000 deliveries this year, which would correspond to monthly average sales of 11,618 units for the remainder of the year.
It replaced the Avatr EV brand from state-owned Chongqing Changan Automobile as the country’s 8th largest EV upstart, according to Reuters’ analysis of monthly sales data from ByteDance’s car information platform Dongchedi.
China’s EV market
China’s EV market has been crowded by an increasing number of upstarts that include pure EV manufacturers such as Nio and Xpeng as well as EV sub-brands from traditional automakers including GAC’s Aion and Geely’s Zeekr.
Huawei-backed Harmony Intelligent Mobility Alliance (HIMA) is also among the new upstarts. Brands under the HIMA include Aito and Luxeed and their combined EV sales totaled 20,819 units in April, according to Dongchedi data.
Xiaomi’s EV sales better than competition
Xiaomi’s estimated monthly sales of more than 11,000 units for the remainder of the year also puts it in a close competition with Volkswagen, which has fared better than most other foreign legacy auto brands in competing with Chinese EV players.
VW delivered 13,108 EVs in April under its ID series through two Chinese joint ventures, with the models starting at a lower price than Xiaomi’s standard SU7 at $29,845.59.
EV makers shifts focus
As EV makers grapple with growing competition in the China market, many are now shifting their focus to overseas markets.
China’s passenger vehicle exports surging to a record high in April, whereas domestic sales contracted 5.8% from a year earlier, data from the China Passenger Car Association showed.
Market bullish on Xiaomi
The market is set to turn even more bullish on Xiaomi in coming years, according to some analysts. HSBC Qianhai forecasts sales of the Xiaomi vehicle at 240,000 units in 2025 and 348,000 units in 2026.
Local champion BYD topped China’s EV sales rankings with 120,234 units last month. Sales were largely driven by affordable models much cheaper than the SU7.
U.S. giant Tesla netted 31,421 units in Model 3 and Y sales in April.
Xiaomi’s base model SU7 is about $4,000 cheaper than the base model of Tesla’s Model 3 in China.
