Xiaomi’s Ambitious Automotive Venture: Targeting Europe’s EV Market

Chinese tech company Xiaomi is making a strategic move into the automotive industry, aiming to compete with Tesla and BYD. The company’s initial foray into electric vehicles with the SU7 EV has already made waves, and now its focus is set on the European electric car market. Xiaomi has built a strong presence in China’s EV sector and is now preparing to directly challenge established players like Tesla and BYD. The company intends to launch its first electric car in Europe by 2027, where Tesla and BYD are already present. Xiaomi’s President, Lu Weibing, has also hinted at the company’s ambitions in this direction. Media reports suggest that Xiaomi’s electric car launch has led to a 31% increase in quarterly revenue, further bolstering the company’s confidence. However, Xiaomi faces challenges in the European market due to import duties and tariffs. Selling cars in Europe could result in taxes of up to 48%, including a 10% basic duty and 35-38% in additional charges. This could present a significant hurdle for managing costs and margins. Currently, Xiaomi only sells the SU7 electric sedan, with a production of one lakh units completed last year. The Xiaomi SU7 Max is equipped with a 101 kWh battery pack, providing a driving range of up to 800 kilometers on a single charge. The SU7 Max accelerates from 0 to 100 km/h in 2.78 seconds and reaches 200 km/h in 10.67 seconds, with a top speed of 265 km/h. The car also features 668 bhp of output and 838 Nm of torque.