Xiaomi to sell EVs outside of China
As the portal 36Kr reports, citing several sources, Xiaomi is setting up a car business abroad. The company has set up a preparatory team for overseas sales and is creating positions in areas such as market research, project management and after sales. The report refers to an “international department.”
Insiders told 36Kr that after the team is formed, Xiaomi will conduct small-scale vehicle sales in several overseas regions to test market reactions and prepare for large-scale expansion. However, a possible timetable for the first and second wave of expansion and potential markets are not mentioned.
However, according to 36Kr, a focus is emerging in terms of content. Xiaomi is also said to have created several positions within the autonomous driving department that are not related to China. These employees will be responsible for “the regulatory verification and functional implementation of autonomous driving functions overseas.” In other words, Xiaomi’s driving assistants are to be adapted so that they comply with the legislation of the respective country.
This could also involve Europe. In the summer, Xiaomi presented two examples of its first electric car, the SU7 sedan, in France as part of an exhibition in the museum district of Paris. On the sidelines of this event, Xiaomi CEO Lei Jun responded to an explicit question by saying that the goal was to “sell Xiaomi-branded cars in Europe before 2030.” However, there is no explicit confirmation that France or Europe is part of the current considerations.
However, a sales strategy is already emerging – Xiaomi is apparently not focussing on traditional car dealerships. As 36Kr writes, the ‘overseas sales of Xiaomi Auto will mainly be handled by the Mi Home shops of the international department’. These are shops that are operated directly by Xiaomi – primarily to sell consumer electronics products. There are currently more than 100 such shops. However, Xiaomi President Lu Weibing has already announced plans to open 10,000 Mi Homes abroad within five years.
Chinese industry experts believe that Xiaomi is generally well positioned for a launch abroad because the company already has sales structures, a high level of brand awareness (unlike Xpeng or Nio, for example) and experience in dealing with European customers and authorities as well as localising marketing strategies.
But one big question remains unanswered: At what prices can Xiaomi offer its e-cars overseas? The SU7 starts at 215,900 yuan in China, or the equivalent of just under 28,000 euros. With the YU7, Xiaomi has presented a corresponding electric SUV, but no prices are yet known. It is clear that customs duties and transport costs will cause the price to rise. The SU7 could also be positioned as a high-end product (as in China) – with a corresponding price. Xiaomi smartphones are primarily in demand in Europe as low-cost alternatives, while Xiaomi’s market share in the high-end market is rather low – which is why Xiaomi “faces […] the lack of recognition in the high-end market.”
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