China’s Xiaomi unveils first EV

Chinese smartphone maker Xiaomi unveiled its first electric vehicle (EV) on Thursday, while also announcing the company’s ambitious goal of becoming one of the world’s top five automakers.

The upcoming sedan, named SU7 (with SU standing for Speed Ultra), is generating a lot of excitement. Chief Executive Lei Jun has highlighted its “super electric motor” technology, boasting acceleration speeds faster than those of Tesla (NASDAQ:) and Porsche EVs.

Despite the imminent launch in a few months, the car arrives amidst challenges in China’s auto market, the world’s largest, facing excessive production capacity and declining demand, leading to an intense price competition.

Nevertheless, Xiaomi’s Chief Executive Lei Jun remains undeterred, outlining significant ambitions for the car.

“By working hard over the next 15 to 20 years, we will become one of the world’s top 5 automakers, striving to lift China’s overall automobile industry,” said Jun at the unveiling event.

The SU7 will be available in two versions: one offering a driving range of up to 668 km (415 miles) on a single charge and another with an extended range of up to 800 km. In comparison, Tesla’s Model S provides a range of up to 650 km.

While the pricing details have not been revealed yet, Lei mentioned that the cost would be “a bit high,” but justified enough for everyone to understand and consider reasonable.

Xiaomi has committed to investing $10 billion in the automotive sector over the span of ten years. It stands among the few new entrants in China’s EV market to obtain approval from authorities, which have been cautious about adding to the excess supply.

The production of Xiaomi’s cars will take place at a Beijing factory owned by a subsidiary of the state-owned automaker BAIC Group, which boasts an annual production capacity of 200,000 vehicles.