According to a statement released by Xiaomi (1810.HK), the company is set to begin delivering its first electric vehicle (EV) in China this month. This marks the company’s entry into the largest car market in the world during a period of intense price rivalry.

In a Weibo post, the fifth-largest smartphone manufacturer in China said that orders for its new Speed Ultra 7 (SU7) vehicle will be accepted at 59 of its locations across 29 cities in the country. The sticker tag for the new EV is anticipated to be revealed to the public at a launch ceremony on March 28.

China had a 21% increase in EV sales for the entire year of 2023, with sales rising by 18% in January-February. This year, in an attempt to win over customers despite declining domestic demand, market leader BYD (002594.SZ) opened new tab and initiated a series of steep price cuts.

Xiaomi’s CEO, Lei Jun, declared during the SU7’s December launch that the company aimed to rank among the top five automakers globally.
According to Lei, the SUV’s “super electric motor” technology can accelerate vehicles more quickly than Porsche’s and Tesla’s (TSLA.O) EVs.

Analysts predict that the car’s operating system, which is similar to that of Xiaomi’s well-known phones and other electronics, will appeal to the company’s current clientele.

“Xiaomi’s cars are going from zero to one in a very different growth stage and facing very different user expectations compared to when Xiaomi’s smartphones went from zero to one 14 years ago,” Lei said in a Weibo post on Tuesday.”Xiaomi’s cars need to be different, and the most important aspect is smart technology.”

Given the sluggish market for smartphones, Xiaomi has been attempting to expand beyond its core industry by focusing on EVs. The company initially announced this intention in 2021.

Its vehicles will be manufactured at a Beijing plant with an annual capacity of 200,000 vehicles by a branch of the state-owned carmaker BAIC Group (1958.HK), opens new tab.