The automobile industry in China is undergoing a dramatic turnaround with the entry of smartphone giant Xiaomi into the electric vehicle market.
The launch of the Xiaomi SU7, with an aggressive starting price of 215,900 yuan ($29,850), represents a significant discount compared to competitors, including Tesla’s Model 3. In just one day, nearly 90,000 orders were placed, indicating strong demand for affordable electric vehicle options.
The response from competitors was not long in coming, with manufacturers such as Nio, Zeekr and Avatr Tech reacting with price cuts on their own models. Competition is so fierce that even Tesla, the established market leader, is being pressured to reevaluate its prices, with recent increases in the price of the Chinese-made Model Y.
As 2024 unfolds, competition is expected to intensify further, with a number of new models entering the market. This year will be crucial for electric vehicle companies to solidify their position in an increasingly competitive environment.
Translation: Mei Zhen Li
Source: Yicai Global
Main image: Ju Huanzong/ Xinhua
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