Iaomi begins delivering the SU7 Ultra smartphone model after collecting 19,000 orders on Twitter.
In the burgeoning electric vehicle market, Xiaomi's latest offering, the SU7 Ultra, has made a significant impact. With its starting price of RMB 529,900 ($72,750), the luxury electric sedan was launched to compete with industry heavyweights like Porsche.
In a remarkable turn of events, the SU7 Ultra reached its annual sales target of 10,000 units within just 2 hours of its official launch. This rapid success has surpassed initial expectations, which were based on the limited sales of sedans priced above RMB 500,000 in China, where only 121,000 such vehicles were sold in 2024.
Lei Jun, founder, chairman, and CEO of Xiaomi, announced that the number of firm orders for the SU7 Ultra had reached an impressive 19,000 units. Moreover, locked-in orders for the SU7 Ultra have exceeded the initial target of 10,000 units.
In an effort to accommodate this overwhelming demand, Lei is currently discussing with his team about boosting the SU7 Ultra's production capacity. This move underscores Xiaomi's commitment to meeting customer demand and solidifying its position in the premium electric vehicle market.
For those who have placed firm orders, Xiaomi EV is offering a 7-day hesitation period during which they can get a refund on the RMB 20,000 deposit. However, deposits for locked-in orders are non-refundable.
The SU7 Ultra's sales figures far exceed those of its predecessor, the SU7, which was priced significantly lower at RMB 285,000 below its pre-sales price of RMB 814,900. This price reduction, coupled with the SU7 Ultra's advanced features, has driven demand for the luxury electric sedan.
Despite the success of the SU7 Ultra, the introduction of the YU7 SUV has not significantly cannibalized SU7 sales, as less than 15% of YU7 orders were transferred from SU7 reservations. This suggests that Xiaomi's growing product portfolio is catering to different segments of the market without compromising the appeal of its premium offerings.
As the SU7 Ultra continues to make waves in the Chinese market, it will be interesting to see how it fares against other luxury sedans priced above RMB 500,000, such as Tesla models and offerings from traditional luxury brands like Mercedes-Benz or BMW. However, the initial success of the SU7 Ultra indicates that Xiaomi is well-positioned to challenge these established players.
[1] Data sources: Statista, Xiaomi official website, and various media reports.
- The SU7 Ultra, Xiaomi's latest offering in the electric vehicle market, has reached its annual sales target of 10,000 units in just 2 hours, a figure that surpassed initial expectations based on sales data from 2024.
- Lei Jun, the CEO of Xiaomi, is currently discussing with his team about boosting the SU7 Ultra's production capacity to accommodate the overwhelming demand it has generated.
- Xiaomi EV is offering a 7-day hesitation period for those who have placed firm orders for the SU7 Ultra, during which they can get a refund on the RMB 20,000 deposit, while deposits for locked-in orders are non-refundable.
- The SU7 Ultra's sales figures far exceed those of its predecessor, the SU7, due to its advanced features and a significant price reduction, indicating that the luxury electric sedan has been driving demand in the market.
- As the SU7 Ultra continues to perform well in the Chinese market, it will be interesting to see how it competes against luxury sedans like Tesla models, Mercedes-Benz, and BMW, currently priced above RMB 500,000, indicating that Xiaomi is well-prepared to challenge established players in the automotive industry, particularly with the integration of technology in transportation.
