Xiaomi Corp. saw a notable surge in its shares, climbing as much as 7.5% in Hong Kong on Tuesday, following the announcement of its imminent entry into the electric vehicle (EV) market.
The Beijing-based electronics giant, renowned for its smartphones, revealed plans to commence sales of its long-awaited electric vehicles later this month.
The company’s bold venture into the EV sector represents a substantial investment, aimed at challenging established players like Tesla Inc. and BYD Co. Xiaomi will debut its SU7 series of electric vehicles for purchase on March 28 across 29 cities, as disclosed in a recent Weibo post. However, specific pricing details were not provided at the time of the announcement.
Led by billionaire co-founder Lei Jun, Xiaomi’s foray into car manufacturing marks a significant shift in focus for the company, with Jun identifying the EV endeavor as his final entrepreneurial bet.
Leveraging its partnership with state-owned Beijing Automotive Group Co., Xiaomi aims to sidestep the lengthy process of obtaining a manufacturing permit from domestic regulators.
The SU7 series, aptly named ‘Speed Ultra,’ boasts impressive specifications, with the vehicles capable of accelerating from 0 to 100kmh in just 2.78 seconds, according to Xiaomi.
Despite entering a fiercely competitive market landscape, Xiaomi faces the challenge of capturing consumer attention in an arena teeming with numerous models from various brands, especially with the expiration of state reimbursements for EV buyers in 2022.
