The Chinese smartphone company Xiaomi has announced that it will sell its first electric vehicle, SU7, at a much lower price than that of the Tesla Model 3, as price wars escalate in the highly competitive electric car market in China.
Xiaomi CEO Lei Jun stated that the standard version of the SU7 will be sold for 215,900 yuan (30,408 USD) in the country – a price he acknowledged would mean each car would be sold at a loss, CNBC reports.
The price of Tesla's Model 3 starts at 245,900 yuan in China.
One SU7 Every 76 Seconds
Lei claimed that the standard version of the SU7 surpassed the Model 3 model by more than 90% of its specifications, except for two aspects that he said Xiaomi would need at least three to five years to catch up with Tesla.
The SU7 has a minimum range of 700 kilometers, compared to the Model 3's 606 kilometers.
Orders exceeded 50,000 cars within the 27 minutes since sales began on Thursday at 22:00 Beijing time, the company announced.
Deliveries are scheduled to start by the end of April, Lei said.
He also claimed that Xiaomi's car factory, where all "key" steps are fully automated, can produce a SU7 every 76 seconds.
However, it is not clear if the factory is fully operational.
Earlier this week, Xiaomi's CEO announced on social media that the SU7 will be the best sedan "under 500,000 yuan" (69,328 USD).
The car enters an extremely competitive market in China, where companies are launching numerous new models and reducing prices to survive.
Tesla's Model 3 is the best-selling new electric sedan in China, with a minimum driving range of 600 kilometers and costing less than 500,000 yuan, according to data on the Autohome industry website.
Wide Range of Accessories
CEOs of competing electric car startups Nio, Xpeng, and Li Auto were among the guests present at the Xiaomi SU7 launch event.
Lei showcased a wide range of accessories, such as a car refrigerator, a personalized windshield screen, and a smartphone holder, some available for free with the purchase of a car before the end of April, and others at a separate price.
The SU7 supports Apple CarPlay and can integrate with the iPad, Lei said. He also revealed driver assistance technology for highways and cities, which is set to be fully available in China by August.
Tesla's Autopilot for highway driver assistance is available in China, but the company's "Full Self Driving" for city streets has not yet been launched in the country.
The SU7 is part of Xiaomi's recently launched strategy, "Human x Car x Home," aiming to build an ecosystem of devices connected to its new HyperOS operating system.
Lei told CNBC that the SU7 will be sold first to consumers in China and that it will take at least two to three years for any overseas launch.