In the past two months, the hot sales of the Xiaomi SU7 have vividly demonstrated the potential of China's new energy vehicle market.
After the reshuffling of the past two years, many latecomers have halted or even shut down operations. Initially, it seemed the entry of newcomers would result in chaos. The discerning eyes and demanding needs of Chinese consumers often leave newcomers feeling powerless. But now, it's unclear how the outside world perceives this situation.
It's perhaps premature to conclude that Xiaomi's car manufacturing will succeed. The recently normalized delivery of the Xiaomi SU7 must satisfy everyone, which is no easy task. However, Xiaomi is indeed changing the operational rules of the entire industry with its approach, providing valuable references for the future trajectory of the industry.
Compared to overseas markets, the lack of long-standing historical accumulation makes intelligent vehicles in China merely serve as "transportation tools." As more young people no longer invest external emotions in cars, brand loyalty often becomes a hollow term, leading to situations like the explosive popularity of the Xiaomi SU7 in the Chinese market.
However, being at the forefront of the times also brings a problem. Rapid innovation piques consumers' curiosity about the future. Continuous product updates from car companies mean new cars available to users are appearing in a burst.
Two months ago, the Xiaomi SU7 emerged as a dark horse. Lei Jun's hype turned this overdue new car into the most influential industry masterpiece of 2024.
Everyone says the Xiaomi SU7 is a well-rounded product. Even compared to some benchmarks, this sporty pure electric sedan performs exceptionally well. Such evaluations are significant for Xiaomi Auto, which has just over three years of history.
Now, with the world changing rapidly and competitors quickly entering the 200.000 to 300.000 yuan pure electric car market, can Xiaomi maintain its current status? With rapidly increasing delivery volumes and user feedback, can Xiaomi improve in its upcoming SUV models?
How long will the Xiaomi SU7 remain popular? This is a question we are eager to answer. The rapid changes in the Chinese car market make it hard to believe that any model can stay at the top of the sales charts for long.
The Times Make Heroes?
Shortly after the Xiaomi SU7 was launched, Lei Jun said in a live broadcast, "It's too early to say whether Xiaomi Auto is successful, but the first phase is considered successful. The car manufacturing cycle is relatively long, and Xiaomi is a long-term-oriented company. Now, we need to ensure the quality of our cars and serve our customers well. Xiaomi Auto's goal is to become one of the top five car manufacturers in the world within 15 to 20 years."
At the second Future Auto Pioneers Conference earlier this month, Lei Jun stated, "The first-month lock-in orders for the Xiaomi SU7 were 88.063 units; 8.630 new cars were delivered in May; we aim to deliver 10.000 units in June and 120.000 units for the year."
In terms of data, the Xiaomi SU7 currently delivers over 2.000 new cars per week, proving that Lei Jun's bold words are not empty promises. Compared to Li Auto, which is also focusing on the pure electric market this year, the Xiaomi SU7's market performance is equally impressive.
Who exactly is buying the Xiaomi SU7? This has been a topic of discussion over the past month as we observed market trends.
This is not just because Xiaomi inherently has a strong public appeal, transferring its traffic inertia to the sales of the Xiaomi SU7. It's also because the pure electric sedan market has seen many new cars come and go, with models like the Hoppe GT, R-Fun R7. and IM L6 becoming fleeting memories, while only the Xiaomi SU7 retains a solid position.
After experiencing the entire product line of the Xiaomi SU7. we might conclude that Lei Jun and Xiaomi have delivered a highly complete product to the market in three years. For many consumers who have purchased or are considering the Xiaomi SU7. this is already a compelling reason to buy.
However, reflecting on the essence of the Chinese car market's development, we must realize that Xiaomi, after its initial success, must not focus solely on "how to increase production capacity."
Who knows if the ever-changing Chinese car market might backstab Xiaomi at some point? The failure of Li Xiang's MEGA serves as a reminder to everyone not to mistake luck granted by the times for one's own strength.
Simply put, as the world's most discerning car users, any new trends in the market will influence Chinese consumers' future decisions.
For Xiaomi, leaving aside whether the SU7 will have after-sales issues as the brand's first car, facing an increasingly competitive market, it must weigh its ability to adapt to market changes to maintain its current state throughout 2024.
Can Xiaomi Continue to Succeed?
The power of Xiaomi fans is substantial. Lei Jun's inspirational persona attracts many willing to purchase the Xiaomi SU7. These are facts we have observed over the past two months.
However, will traditional car companies or predecessors admit defeat just because a newcomer can achieve unprecedented success? Clearly not.
In June, Lynk & Co launched the all-electric mid-to-large sedan Z 10 in Gothenburg, Sweden, signaling that the market in the 200.000 to 300.000 yuan price range is not easy. At the same time, Zeekr's models like Zeekr 001 and Zeekr 007. which compete directly with the Xiaomi SU7. are showing even more aggressive stances this month.
Is the market capacity for pure electric sedans in this price range large? Not really.
Monthly sales data clearly show that only a few models can stand at the top of the list. Under the siege of Tesla Model 3. Zeekr 001. BYD Han EV, and NIO ET5. there is little room for survival.
In the short term, the hot sales of the Xiaomi SU7 seem to have taken potential users from these competitors, drawing young people who originally leaned towards BBA. But in the long term, unless the Chinese car market provides a nurturing environment for the "internet celebrity economy," it will be challenging for Xiaomi or any new car-making force to maintain their market status.
Success is Not Achieved Overnight?
To speed up deliveries, news came out in mid-May that Xiaomi was asking upstream suppliers to increase the supply of parts. Later, some even claimed that Xiaomi would use its financial power to acquire idle factories of bankrupt car companies to speed up the production of the Xiaomi SU7.
Xiaomi has officially clarified and denied these rumors. However, what hasn't changed is Xiaomi's relentless efforts to create an unobstructed delivery chain for the Xiaomi SU7. from procurement to manufacturing and finally reaching consumers nationwide. Nothing is more important than fulfilling orders.
In May alone, Xiaomi added nine new car stores and planned to add 19 more in June, moving closer to its goal of completing 219 stores in 46 cities and 143 service centers in 86 cities by the end of the year.
Today, the Xiaomi SU7 continues to inspire endless imagination among Xiaomi enthusiasts. But as we enter the second half of 2024. even setting aside competitors' attacks, maintaining a healthy and somewhat fault-tolerant operation in Xiaomi's rapid development will require significant efforts in subsequent product planning.
As mentioned earlier, the market for pure electric sedans where the Xiaomi SU7 is located is not a vast segment. With the competition entering a new round of multi-strong rivalry, who dares to conclude that Xiaomi can continue to succeed after delivering 120.000 Xiaomi SU7s this year with the support of Xiaomi fans?
Lei Jun once admitted with lingering fear, "The success of Xiaomi Auto makes me nervous; almost every detail needs to be scrutinized."
In the end, after experiencing market enthusiasm, Xiaomi can hardly be sure whether the advantages of the Xiaomi SU7 will provide a perfect foundation for Xiaomi's next car while bringing new experiences to consumers. After all, the Xiaomi SU7 is the brand's first model, and some issues may accumulate to a point beyond Xiaomi's control.
"The Xiaomi SU7 needs a new helper." This is what the outside world expects, constantly reminding Xiaomi not to be overwhelmed by the "prosperity" created by the Xiaomi SU7.
In recent days, spy photos of Xiaomi's second car have spread across many social media platforms. From the pictures, it appears that Xiaomi's new SUV, unlike popular large family SUVs like the AITO M7 or Li L series, will likely feature a long hood and coupe styling, focusing on sporty and individualistic labels like the Xiaomi SU7.
Additionally, on the Nürburgring Nordschleife in Germany, foreign media have also spotted a disguised car likely to be the high-performance version of the Xiaomi SU7 doing lap times.
Regardless of whether these spy photos are Xiaomi's new cars, in an era where new cars enter the market like dumplings, Xiaomi needs to prove this year that it can keep up with the industry's pace in product lineup as a car company.
History has shown us that a brand relying on a single model is not sustainable. For Xiaomi, ensuring the Xiaomi SU7's popularity requires the brand's second or even third model to work together.
The Chinese car market is highly competitive. The Xiaomi SU7 has fortunately captured consumers' minds and used marketing power to secure a large number of orders. From an observer's perspective, Xiaomi's first phase of car manufacturing has presented us with an almost perfect answer sheet.
However, using past experiences to foresee the future, we believe the popularity of the Xiaomi SU7 is temporary. If Xiaomi is to dominate the fiercely competitive Chinese car market and surpass all predecessors, it must continue to learn humbly. Touching the industry's entry threshold is easy, but leveraging it to grow into an industry giant requires more than just selling one car well.
