Home Finance Chinese smartphone company Xiaomi will deliver 20,000 SU7 EVs in October

Chinese smartphone company Xiaomi will deliver 20,000 SU7 EVs in October

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Chinese smartphone company Xiaomi announced on Tuesday that a sports car version of its SU7 electric sedan will start pre-orders for the equivalent of more than $110,000.

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BEIJING – China Xiaomi said Tuesday that it is more than 20,000 pieces delivered SU7 EVs in October as it ramps up production for its electric car venture in a fiercely competitive market.

The Chinese company, best known for its smartphones and home appliances, reiterated plans to deliver 100,000 SU7 vehicles by the end of November. Xiaomi first unveiled plans to make cars in 2021 and began building a dedicated factory that same year.

The company released the base version of the SU7, its first car, in late March for about $4,000 less than Tesla‘s cheapest car – Model 3 – in China at the time. Tesla then lowered the price of the car by approximately $2,000. Xiaomi has delivered over 75,000 SU7 cars to date, including October figures.

Chinese rivals Xpeng And Nio It took about six years to produce 100,000 electric cars, while it took Tesla twelve years.

While Xpeng set a monthly record of more than 20,000 cars in September, with about half of sales coming from the recently launched lower-priced Mona brand, Nio has struggled to keep monthly deliveries above 20,000 cars.

Zeekran electric car brand founded by car manufacturer Geely, claims it is being produced more than 100,000 vehicles in 1.5 years. It delivered a record number of 21,333 cars in September.

Data on deliveries from other Chinese electric car companies for October is expected on Friday.

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“The news of 20,000 deliveries in October confirms that [Xiaomi] will be a force to be reckoned with in the world’s largest EV market,” said Brian Tycangco, analyst at Stansberry Research.

He said Xiaomi’s EV gross profit margins in August were similar to Xpeng’s that month, and have likely improved since then given increased production.

Xiaomi also announced on Tuesday that it is taking pre-orders for the high-end sports version, SU7 Ultra, starting at 814,900 yuan ($114,304), ahead of a product release in March 2025. The company claimed that it received more than 3,600 pre-orders within 10 minutes, for which each requires a deposit of 10,000 yuan.

The new model and its praised performance on Germany’s Nürburgring circuit will likely help Xiaomi sell more of its premium SU7 Max car, which costs just 299,900 yuan, Citi analysts said in a report. They now expect Xiaomi to ship 250,000 cars next year, up from 238,000 previously forecast.

Xiaomi claimed this week that a prototype of the SU7 Ultra became the fastest four-door sedan on the German circuit.

Citi analysts raised their price target for Xiaomi from HK$22.70 to HK$30.60 ($3.94). They also provided forecasts for the company’s smartphone shipments, following the launch of Xiaomi’s flagship Mi 15 on Tuesday – the first phone to be used Qualcomms latest chipset.

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Tesla’s Model Y was the best-selling battery electric car in China in September with 48,202 vehicles sold, according to data from Chinese auto industry site Autohome. The Model 3 ranked 8th with almost 24,000 cars sold.

BYD’s cheaper models accounted for most of the other top 10 bestsellers in the battery-only category. Xiaomi’s SU7 ranked 17th last month with 13,559 cars sold, the data showed.

Xiaomi currently only sells its cars in China. The company told CNBC earlier this year that it would take at least two to three years for an overseas launch.

— CNBC’s Sonia Heng contributed to this report.

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