Xiaomi’s SU7 sedan sold out for 2024, 88,898 firm orders within 24 hours, over Xiaomi’s capacity

Dew Briefs:

• Xiaomi’s SU7 sedan sold out for 2024 within 24 hours of its launch
• With 08 months of full production in 2024, Xiaomi can produce around 100,000 cars, possibly more if there are no major production line issues
• Customers had to pay 5,000 yuan ($850) to book Xiaomi’s SU7

Diver Insights:

• Xiaomi entered China’s electric vehicle market with a strong start, rivaling Tesla and BYD
• Test drives of the SU7 resulted in overcrowded venues in 59 stores across 29 cities in China
• Mass production of the SU7 has already begun, and customer deliveries will start by the end of April, 2024
• Some customers expressed negative sentiment, unable to cancel their firm orders, and there were reports of quality issues with some test cars.
• Despite challenges, Xiaomi successfully launched its first car within three years of announcing EV plans in 2021, positioning itself in China’s competitive EV market.

The Xiaomi SU7 sedan launch commenced on Thursday, and within the first 24 hours, the company received 88,898 firm orders. Test drives began on Friday, resulting in overcrowded venues across 59 stores in 29 cities nationwide.

• The company received approximately 90,000 firm orders within the first 24 hours of the launch
• No further updates have been provided by the company since then
• It is highly likely that the order book has surpassed 100,000 units within 48 hours after the launch
• Xiaomi’s Beijing plant has an annual production capacity of 150,000 vehicles in the first phase, expanding to 300,000 in the second phase
• Xiaomi uses Beijing Automotive Industry Holding Co. (BAIC) as a contract manufacturer for the SU7
• BAIC Off-road Vehicle Co., a subsidiary of BAIC, will assemble the SU7 in Xiaomi’s new plant in Beijing

With mass production already underway, customer deliveries are slated to commence by the end of April. Despite reports of customer complaints and quality issues, Xiaomi’s swift entry into the electric vehicle market within three years of announcing its plans in 2021 underscores its determination and potential to disrupt the industry.

As China’s electric vehicle competition heats up in 2024, Xiaomi’s successful debut sets the stage for a dynamic and fiercely competitive market landscape.