Xiaomi has introduced its first electric car, just days after Huawei launched another of its own, signaling that the efforts of Chinese tech giants to enter the electric vehicle market are starting to materialize.
On Thursday, Xiaomi revealed the SU7 sedan, just two days after Huawei debuted its Aito M9 SUV. Both companies, originally known for manufacturing smartphones and other consumer electronics, have in recent years expressed significant ambitions in the automotive sector.
In 2021, Xiaomi announced a $10 billion investment over the next decade in a subsidiary dedicated to smart electric vehicles.
At the launch event on Thursday, CEO Lei Jun stated that the company was entering a “new decade” with aspirations to become one of the world’s top five automakers within the next 15 to 20 years.
“It’s a new starting point for Xiaomi, and I’m convinced that one day in the future, there will be Xiaomis running on every road of this world,” he said.
He acknowledged the significant challenges, saying, “To build a good car, it is still very, very difficult.”
Nevertheless, Lei indicated that after several years of effort, Xiaomi had developed a car comparable to Tesla’s Model S and Porsche’s Taycan Turbo, showcasing a slide that compared the performance statistics of all three models.
Mark Rainford, an automotive industry commentator in Shanghai and host of the YouTube channel “Inside China Auto,” described Xiaomi’s car as “a winner” and predicted strong sales in China.
“It looks very compelling on paper, both in terms of performance and technology,” Rainford said, highlighting the car’s seamless integration with Xiaomi’s smartphones.
By introducing a luxury product, the company seems to be aiming at a different market segment, Rainford noted.
“It’s clear they see themselves as competitive with, or even superior to, Porsche and Tesla’s flagship models, which is quite ambitious for a brand typically recognized as a strong player in consumer electronics rather than a premium automaker,” he added.
Xiaomi did not disclose the price of the new model at the event, though Lei mentioned it would be “a little bit high.”
This debut of Xiaomi’s electric vehicle coincides with Huawei’s launch of the Aito M9, a six-seater vehicle starting at 469,800 yuan (approximately $66,500).
Huawei has claimed that the SUV offers “the largest space performance in its class,” featuring premium elements such as a projection screen intended to replicate a cinematic experience without causing motion sickness. The vehicle also includes massage-function seats and double armrests to enhance passenger comfort, according to a statement released on Tuesday.
These new models contribute to China’s highly competitive auto market—the largest in the world—where recent months have seen a price war driven by intense competition and high inventory levels.
Last month, Huawei also introduced an electric sedan aimed at competing with Elon Musk’s Tesla (TSLA).
