In a recent public event, Lei Jun, the founder and CEO of Xiaomi Group, shared insightful views on the market performance and industry status of Xiaomi’s latest all-electric sedan, the Xiaomi SU7.

Lei Jun pointed out that amid the widespread losses in the current electric vehicle industry, discussing cost-effectiveness might not be appropriate. He also emphasized the delivery challenges faced by the Xiaomi SU7 and the company’s response measures.

Market Performance and Challenges of Xiaomi SU7

Since its release, the Xiaomi SU7 has garnered widespread attention in the market. Lei Jun stated that although the model has only been on the market for 20 days, it is premature to discuss its success. He revealed that the Xiaomi SU7 has undergone intense scrutiny during public testing, with every detail being carefully examined by the public, which has put considerable pressure on him.

In his view, true success lies not only in ensuring manufacturing quality but also in ensuring delivery and service quality. Lei Jun particularly mentioned that in the current market environment, consumers have high expectations for new cars, and any minor flaw could be magnified infinitely. Therefore, Xiaomi has invested heavily in production and quality inspection processes to ensure that every delivered SU7 meets high standards.

Delivery Time and Supply Chain Management

Addressing concerns raised by netizens about the long delivery time of the Xiaomi SU7, Lei Jun explained that Xiaomi has achieved immediate delivery upon release. He also revealed that the sales of the Xiaomi SU7 have exceeded expectations, surpassing forecasts by 3-5 times. Consequently, Xiaomi urgently convened a supplier conference a week ago to accelerate production to meet market demand.

These series of measures demonstrate Xiaomi’s rapid response capability in supply chain management. Lei Jun emphasized that faced with the sudden market enthusiasm, Xiaomi has adopted various strategies, including optimizing production lines, enhancing supply chain efficiency, and increasing inventory reserves, to ensure timely meeting of consumer demands.

Cost-effectiveness and Industry Losses

Regarding the cost-effectiveness of the Xiaomi SU7, some netizens have raised doubts. In response, Lei Jun stated that most electric vehicle companies are not profitable, with some even losing hundreds of thousands of yuan for every car sold. He believes that in such a universally loss-making industry, discussing cost-effectiveness is not appropriate.

Lei Jun elaborated on the common phenomenon in the current electric vehicle industry, namely, the loss-making state caused by high R&D costs and market competition pressure. He pointed out that although the pricing of the Xiaomi SU7 is lower than the market average, this is based on strategic investment and long-term market layout considerations. By attracting more users and establishing brand awareness, Xiaomi hopes to gain a favorable position in future market competition.

Pricing Strategy and Market Competition

The pricing strategy of the Xiaomi SU7 has also attracted market attention. Lei Jun mentioned that the original pricing was 229,000 yuan, and the top configuration version was originally priced at 350,000 yuan. However, due to price wars between car companies, Xiaomi decided to attract consumers with a more sincere price. Therefore, the standard version is priced 30,000 yuan lower than the Tesla Model 3, while the Max version is priced at 299,000 yuan.

Lei Jun pointed out that such a pricing strategy is not only aimed at seizing market share but also at allowing more consumers to experience high-quality electric vehicles. He emphasized that a low price does not mean low quality, and while Xiaomi maintains price competitiveness, it still adheres to high standards of manufacturing and service quality.

Long-term Development and Strategy of Xiaomi

In today’s increasingly competitive electric vehicle market, the launch of the Xiaomi SU7 is undoubtedly an important step for Xiaomi’s entry into the automotive market. Lei Jun stated that despite the overall industry losses, Xiaomi remains optimistic about the long-term development of electric vehicles and is committed to winning the market through technological innovation and high-quality service.

He detailed Xiaomi’s future development strategy, including its layout in autonomous driving technology, battery technology, and intelligent connectivity. Lei Jun believes that only through continuous innovation can one remain invincible in future market competition.

Overall, the launch of the Xiaomi SU7 not only reflects Xiaomi’s diversification strategy but also tests its manufacturing and delivery capabilities. Against the backdrop of widespread losses in the electric vehicle industry, how Xiaomi balances costs and quality and maintains competitiveness in fierce market competition will be the focus of external attention. Lei Jun emphasized that Xiaomi will continue to increase investment in technology research and development and supply chain management to ensure the continuous provision of high-quality products and services.

Future Challenges and Prospects

In the future, whether Xiaomi can make breakthroughs in the field of electric vehicles depends not only on the performance and price of the product itself but also on Xiaomi’s comprehensive strength in supply chain management, brand building, and technological innovation. Lei Jun and his team will face a series of challenges, including how to shorten delivery times, improve production efficiency, and establish the brand image of Xiaomi automobiles in the minds of consumers.

Lei Jun pointed out that Xiaomi will address these challenges by strengthening cooperation with suppliers, optimizing production processes, enhancing brand image, and other efforts. As the delivery and market feedback of the Xiaomi SU7 continue to unfold, Xiaomi’s journey in the field of electric vehicles will become clearer.

Regardless of the outcome, the launch of the Xiaomi SU7 will be an important milestone in Xiaomi’s history, marking Xiaomi’s deep exploration in the field of intelligent mobility. Lei Jun stated that Xiaomi will continue to adhere to a user-centric approach, winning consumer trust and support through continuous innovation and improved service quality.