TapTechNews May 13th news, according to Bloomberg, Xiaomi plans to start production and sales of an SUV model similar to Tesla Model Y as early as 2025, marking a major expansion of Xiaomi's automotive business. The production of Xiaomi's first electric sedan, the SU7, is expected to reach about 100,000 vehicles this year.
According to sources, Xiaomi is approaching its initial production capacity limit and is working to increase production to meet market demand. They said that Xiaomi used Tesla's SUV model as a benchmark during the development process. It is not clear yet the specific specifications and pricing of this SUV in Xiaomi's plan.
Launching the SUV will mark a major expansion of Xiaomi's $10 billion electric vehicle business. Led by Xiaomi co-founder Lei Jun, this business aims to reduce the company's reliance on smartphones. However, Xiaomi's entry into the electric vehicle field will face fierce competition, with established manufacturers such as Tesla and BYD already holding a significant market share.
Sources revealed that discussions about launching an SUV had begun as early as 2021 when Lei Jun announced his entry into the electric vehicle field and considered it his last major entrepreneurial project. However, Xiaomi ultimately decided to prioritize the launch of the SU7 sedan.
Due to the current limited production capacity of the Xiaomi factory, which can only meet a delivery volume of less than 10,000 vehicles per month, Xiaomi expects that this SUV will not be mass-produced until the end of 2025 at the earliest. Sources said that Xiaomi is currently prioritizing the production of the SU7 sedan.
More than 60% of Xiaomi's revenue comes from smartphone sales, and the introduction of electric vehicles is part of its business diversification. TapTechNews noted that official data shows that as of 24:00 on April 30, Xiaomi's SU7 lock-in volume reached 88,063 units. Since the release of SU7, Xiaomi's stock price has risen by about 30%, reaching its highest level in nearly two and a half years.