In the automotive industry, Xiaomi Corp made a strategic decision to venture into the electric car market in China after facing sanctions imposed by the Trump administration in 2021. The renowned company, known for its smartphones and home appliances, saw an opportunity to diversify its product portfolio by entering the competitive EV market.
CEO Lei Jun revealed that the unexpected U.S. sanctions prompted Xiaomi to explore the automotive industry. Following the sanctions, Xiaomi swiftly pivoted its focus towards developing an electric car, leading to the inception of the SU7, a sporty EV model resembling the Porsche, priced below $30,000.
Despite rejecting venture capital offers valuing the early-stage EV operations at $10 billion, Xiaomi plans to deliver over 100,000 units of the SU7 this year, aiming for 120,000 sales. By June, the company had already delivered more than 25,000 EVs and anticipated reaching the set target by November.
Lei Jun expressed gratitude towards the sanctions, acknowledging that they catalyzed Xiaomi’s pursuit of diversification and expansion. The launch of the SU7 marked Xiaomi’s foray into the automotive sector, with aspirations to establish itself as one of the top five global automakers.
Currently, the SU7 is exclusively available in China, with ambitions to expand its presence in the global automotive market. Xiaomi’s entry into the EV industry reflects a strategic move towards innovation and growth, positioning the company to compete with established luxury brands and electric car manufacturers like Tesla.
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