Chinese EV Maker Xiaomi Presells 300,000 EVs in 60 Minutes

Xiaomi, the Chinese tech giant that recently made its foray into manufacturing battery electric vehicles (BEVs), received nearly 300,000 pre-orders just an hour after launching a new EV. Dubbed the YU7, Xiaomi’s 5-seater electric car is its second mass-market electric car and will cost $54,000 (253,500 yuan), almost 4% cheaper than the best-selling Tesla Model Y. 

At this price range, the Model Y will be one of the YU7’s main competitors in China. According to the Beijing, China-based company, the fact that its first electric SUV had 280,000 pre-orders within one hour of launch is a miraculous achievement in the Chinese vehicle industry. 

As the world’s second most dominant smartphone manufacturer behind Apple, Xiaomi turned heads in late 2021 when it announced that it would expand into the electric vehicle sector. After all, several tech companies including Apple had ventured into the electric vehicle sector before scaling back their plans or pulling out of electrification entirely. 

Fortunately for Xiaomi, the electric vehicle market seems receptive to its electric cars. The firm began delivering its first electric car, the SU7 sedan, in April and has reportedly made over 25,000 deliveries with more than 70,000 locked-in pre-orders. Its new electric SUV had 200,000 orders just 3 minutes after launch and 240,000 locked-in pre-orders in the first 18 hours, a feat that left Xiaomi founder and CEO Lei Jun astounded. While Chinese demand for electric cars is high, the Xiaomi executive didn’t expect to sell so many electric cars so fast. 

In a video issued after Xiaomi launched the YU7, Lei said the company had a whopping 128,000 lock-in orders and 196,000 paid pre-orders two minutes after launch, an unmistakable sign that there is robust market demand for Xiaomi electric cars. Like the SU7 sedan, the YU7 SUV will also undercut the Model Y by around 4%, with the YU7 costing $54,000 compared to the Model Y’s $56,000. With Tesla rapidly losing ground in several major markets, Xiaomi’s new electric sports utility vehicle may be able to give the Model Y a run for its money in the Chinese market. 

According to University of Technology Sydney-based China expert Marina Zhang, the Chinese government supported Xiaomi as it expanded into electric vehicle sales. Although there is little evidence that the firm has received direct monetary backing from Beijing, it has benefited from local incentives, regulatory facilitation, and national policies. 

The tech company also announced a $10 billion decade-long investment into developing its electric vehicle wing in 2021. Xiaomi’s entry into the EV race underscores how China’s tech sector is evolving to meet clean energy goals. With growing consumer demand, state support, and competitive pricing, Xiaomi could soon become a major force in the EV industry both within China and beyond. 

As more companies enter the BEV space and carve out a market for themselves, there is likely to be an uptick in the adoption of renewable energy to charge these BEVs, and that could trigger a commensurate expansion in the market served by companies like SolarBank Corp. (NASDAQ: SUUN) (Cboe CA: SUNN) (FSE: GY2). 

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