 "Xiaomi to showcase its first electric car SU7 EV on June 9 in India")
Xiaomi is set to showcase its first electric vehicle in India on July 9, media reports suggest. However, the Chinese firm might not proceed with launching the vehicle in the Indian market.
The showcasing event aims to gauge the interest of Indian consumers.
Known as the SU7 or Speed Ultra, the project represents a significant venture for Xiaomi, involving a global investment of $10 billion in the automotive industry. Deliveries of the SU7 started in China in March, receiving a positive initial response. The base model of the SU7 is priced under $30,000, around $4,000 less than the base model of Tesla’s Model 3 in China.
Xiaomi offers two variants of the SU7. One variant provides a driving range of up to 668 km per charge, while the other extends this range to 800 km, giving consumers options in terms of range and performance.
A report by The Times of India last week stated that the automobile company plans to showcase the SU7 in Bengaluru, with an aim to showcase “the strength of Xiaomi as a brand and show its diversified product portfolio, beyond smartphones which currently is its biggest consumer product”.
The report further quoted a source as saying, “The car will be on display and the company plans to showcase a number of household appliances and even announce its entry into newer categories.”
Xiaomi enters electric vehicle market
Xiaomi introduced its Speed Ultra 7 (SU7) sedan last December, highlighting its ‘super electric motor’ technology, which promises acceleration speeds surpassing those of Tesla and Porsche’s electric vehicles.
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In response to slowing smartphone demand, Xiaomi has been expanding into the electric vehicle (EV) sector since it announced this strategy in 2021.
The production of Xiaomi cars will be handled by a subsidiary of the state-owned BAIC Group at a Beijing factory. It will have an annual production capacity of 200,000 vehicles, according to a report by The Economic Times.
Committed to investing $10 billion in the automotive industry over the next decade, Xiaomi stands out as one of the few new entrants in China’s EV market to receive approval from regulatory authorities, who have been cautious about increasing the supply surplus, the report stated.
Dip in EV sales in India in June
Electric vehicle (EV) sales in India experienced a significant 14 per cent decline in June compared to May, attributed to a combination of factors, including changes in government policies and a growing interest in hybrid vehicles.
However, June 2024 sales were over 20 per cent higher than the same month last year, when sales had decreased due to adjustments in government subsidies.
According to Vahan data from the Ministry of Road Transport and Highways, EV sales in June 2024 dropped by more than 14 per cent to 106,081 units, as compared to 123,704 units in May. This was the lowest sales figure recorded this calendar year.
To date, around 839,545 electric vehicles have been sold this year, representing about 6.69 per cent of the total 12.5 million vehicles sold.