Xiaomi’s first electric SUV or Sedan vehicle depends on consumer price preference
Apr 08, 2021 (China Knowledge) - Xiaomi’s direction towards the electric vehicle (EV) sector takes only 75 days of research and discussion, knowing that more time spent on decision-making would-be time lost to competition.
Xiaomi’s first electric vehicle (EV) would be a SUV or a sedan, with the price range of USD 15,300 to USD 45,900? As they are not looking to challenge Tesla’s status in China as a high-end EV producer, it has to be in congruent to Xiaomi’s longer term strategy. In the past, Xiaomi’s phones have been targeting customers with lower budgets.
This direction might be a strategic one, as it aims to be in the same direction as China’s latest policy, which states that customers are only entitled to state subsidies when they buy passenger cars priced less than USD 45,800, eliminating Tesla’s Model S or NIO EC6.
However, one challenge Xiaomi face would be being sandwiched between the high and low end of the price spectrum. On the high end, Tesla costs RMB 250,000 at minimum while Wuling Motors’ HongGuang Mini EV costs only RMB 30,000.
In term of market opportunities, analysts expect to see EV sales should surge to 1.9 mln units in 2021, more than half of 2020.
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