Xiaomi on wheels on sale. The Chinese phone manufacturer is already offering its electric car

The general editor and founder of the company Lejn announced his intention to enter the electric car market in 2021. He pledged to invest ten billion dollars (about 235 billion K) in the car business and declared this business to be the last big business project of his life. His goal is for Xiaomi, founded in 2010, to become one of the five largest car manufacturers in the world within 15 to 20 years.

Analysts are divided on whether the Xiaomi car project will be closed. Some claim that for Xiaomi, the electric car is a natural differentiator of the business, which allows the company to offer consumers a complete digital life and get more data. Bicycles, air conditioners, televisions, telephones and other electronics from Xiaomi are ubiquitous in people’s homes.

The founder of the company pointed out that the SU7 will be a bit expensive, because he deviated from the image of the company, which produces affordable products. A half of pre-owned cars cost less than 300,000 yen (975,000 K). The SU7 goes on sale at a time when the German car market, which is the largest in the world, is struggling with problems on several fronts. To this, it is necessary to add the price wolf and the slowing domestic economy, which reduces the demand for cars.

A competitor for Tesla will travel 800 kilometers

The current market conditions are quite difficult for newcomers, the top ten games are constantly increasing their popularity, said Gavekal Dragonomics analyst Ernan Cuiov. If Xiaomi is not able to sell in large quantities in a short period of time, the danger is that cars will become a brake on the company’s long-term profit generation.

Currently, according to analysts, the company’s experience in the field of smartphones is two leaps ahead of traditional car manufacturers when it comes to smart dashboards and instruments, i.e. an area that the consumer appreciates.

The SU7 is powered by the Hyper OS system developed by the Xiaomi company, which connects electric car users with their other devices, including a smartphone. One version of the sedan has a range of 668 kilometers on a single charge, the other 800 kilometers. Analysts of the Bernstein company state that the main competitors of Xiaomi will be XPeng and Tesla. Tesla’s Model S has a range of 650 kilometers on a single charge.

Research company CreditSights estimates that Xiaomi will sell 60,000 vehicles in the first year. In the first two years, according to him, the production of the Xiaomi car will be in decline due to the high investment in marketing and promotion.