In a strategic move, a BAIC Group unit has sought regulatory approval to manufacture two electric vehicles (EVs) under the Xiaomi brand, as revealed on China’s industry ministry website. Xiaomi, renowned for smartphones and appliances, is stepping into the electric vehicle market, heightening competition in China, the world’s largest auto market.
The proposed models, SU7 and SU7 Max, will be manufactured by BAIC, featuring different battery technologies. Xiaomi, having received approval from China’s state planner in August, aims to make a significant impact amid a challenging automotive landscape.
BAIC’s regulatory application and Xiaomi’s EV plant
Beijing-based BAIC Group’s subsidiary, BAIC ORV, has formally applied for regulatory approval to produce two Xiaomi-branded electric vehicles. Interestingly, while Xiaomi has established an EV plant with a capacity of 200,000 units per year in Beijing, BAIC is set to be the manufacturer for the proposed models. The filing indicates that BAIC ORV plans to build the EVs at the same location as Xiaomi’s plant, reflecting a collaborative effort between the smartphone giant and the established automaker.
Detailed specifications of Xiaomi’s EV models
The two Xiaomi-branded EVs, SU7 and SU7 Max, are set to feature distinctive battery technologies. The SU7 will incorporate BYD’s lithium iron phosphate batteries, offering a top speed of 210 kph. On the other hand, the SU7 Max will utilize CATL’s nickel- and cobalt-based lithium batteries, providing a higher top speed of up to 265 kph. Both models share a common design language, featuring the distinctive “MI” logo on the front and prominently displaying the “Xiaomi” name on the rear.
Strategic partnership and market implications
Xiaomi’s venture into the EV sector, in collaboration with BAIC, could reshape the automotive landscape in China. With its expertise in consumer electronics, Xiaomi’s foray into electric vehicles aligns with the industry’s shift towards smart and connected mobility. This strategic partnership not only leverages BAIC’s manufacturing capabilities but also positions Xiaomi as a formidable player in the competitive EV market, where overcapacity and slowing demand have triggered intense price competition.
Challenges and opportunities in China’s auto market
China’s automotive sector faces challenges such as overcapacity and a fierce price war that has involved numerous brands, impacting supplier margins. Xiaomi’s entry adds a new dimension to this competitive landscape, bringing innovation and technological prowess. With BAIC seeking regulatory approval, the collaboration underscores the complexity of navigating China’s dynamic auto market.
Progress amid regulatory hurdles
Although Xiaomi received approval from China’s state planner for EV production, regulatory clearance from the Ministry of Industry and Information Technology (MIIT) is crucial. The recent application by BAIC signifies progress, and Xiaomi’s President, Lu Weibing, has indicated that the company’s EV manufacturing is ahead of schedule. This move aligns with Xiaomi’s diversification strategy amid a 4% decline in smartphone market revenue in the second quarter.
Xiaomi’s bold step into electric mobility
Xiaomi’s partnership with BAIC represents a bold step into the evolving landscape of electric mobility. The proposed EV models, with their unique specifications, indicate Xiaomi’s commitment to innovation and sustainability. As regulatory processes unfold, the automotive industry will keenly watch how Xiaomi’s entry influences market dynamics, technological advancements, and consumer preferences in the realm of electric vehicles.