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Xiaomi is mainly associated with affordable smartphones and gadgets that offer a lot for little money. However, in the world of electric cars, the company is adopting a completely different strategy. CEO Lei Jun has clearly stated that the brand does not intend to produce very cheap EVs.
Xiaomi doesn't want to go below a certain price
During a livestream related to the testing of the Xiaomi SU7 model, Xiaomi made a specific declaration that it does not plan to produce cars below 100,000 yuan (about 15 thousand dollars). This is quite surprising, considering the competition in China, where the market for affordable electric vehicles is huge and very price aggressive. The reason is simple: modern electric cars are no longer just about the engine and battery. They also include advanced software, driver assistance systems, and smart features that significantly increase production costs.
Premium strategy instead of price competition
Instead of competing on the lowest price, Xiaomi wants to focus on quality and technology. The company prefers to maintain a higher level of equipment and user experience, even if that means a higher final price. Interestingly, despite rising production costs (by around 20,000 yuan), Xiaomi has only slightly increased the price of its car. This shows that the company is trying to find a balance between affordability and quality.
The market shows it can work
New Xiaomi models are selling very well; thousands of orders in a short time suggest that customers are willing to pay more for a better product. This may mean that the strategy of avoiding the cheapest segment makes sense.
Xiaomi proves that you don't always have to be the cheapest to succeed, especially in a market as advanced as electric vehicles.
source: digitaltrends
