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Xiaomi is mainly associated with inexpensive smartphones and gadgets that offer a lot for little money. However, in the world of electric cars, the company is taking a completely different strategy. CEO Lei Jun clearly announced that the brand does not intend to produce very cheap EVs.
Xiaomi doesn't want to go below a certain price
During a broadcast related to the testing of the Xiaomi SU7 model, a specific declaration was made that Xiaomi does not plan to offer cars below 100,000 yuan (about $15,000). This is quite surprising, considering the competition in China, where the market for cheap electric vehicles is huge and very price-aggressive. The reason is simple: modern electric cars are no longer just an engine and a 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 it means a higher final price. Interestingly, despite rising production costs (even by about 20,000 yuan), Xiaomi has only slightly raised the price of its car. This shows that the company is trying to find a balance between availability and quality.
The market shows that 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
