Xiaomi has been known for building some surprisingly cheap gadgets that still feel a little more premium than they should. But that philosophy apparently does not extend to electric cars.
According to ITHome, Xiaomi CEO Lei Jun said during a livestream for the company’s SU7 endurance challenge on April 17 that Xiaomi will not make vehicles priced below 100,000 Yuan. That works out to be just under $15,000. Lei explained that if consumers expect an electric car to deliver strong intelligent features, software, and overall capability, the cost is harder to squeeze down that far.
Why Xiaomi is ruling out ultra-budget EVs
The comment came in response to a viewer’s question about whether Xiaomi plans to release a plan under 100,000 Yuan. He claims that making intelligent EVs work pushes the cost higher. This is quite the stand in China’s EV market, which is known for its crowded lower-priced models. The segment is brutally competitive and full of models built around cost efficiency first.
Considering its current EV lineup, the company’s decision showcases the focus on more premium EV positioning, where software, smart driving, and higher-spec hardware are the highlights.
Xiaomi would rather absorb costs than race to the bottom
During the livestream, Lei Jun also said that the new-generation SU7 includes more than 100 upgrades, and that material costs alone rose by nearly 20,000 Yuan. Yet, Xiaomi raised the retail price by only 4,000 Yuan to keep the updated model in the budgets of new buyers. And with the new 219,900 Yuan SU7 model reportedly seeing 15,000 orders in just 34 minutes, the company is confident about the strong demand for its cars without diving into the ultra-affordable segment.
So Xiaomi may still be the company that sells dirt-cheap gadgets. But when it comes to cars, Lei Jun is making it clear that Xiaomi would rather stay above the bargain basement.