BEIJING — Xiaomi, a well-known maker of smart consumer electronics in China, is joining the country's booming but crowded market for electric cars.
Lei is not bashful about that challenge, saying at an unveiling of the SU7 in December that Beijing-based Xiaomi aims to become one of the world's top five automakers in the next 15 to 20 years. The combined share of EVs and hybrids in China's auto sales is likely to reach 42% to 45% this year, up from 36% in 2023, according to Fitch Ratings. But the agency said in a December report that the competition could put pressure on automakers' short-term market share and profitability.
“The ability to seamlessly be a continuous part of someone’s life is the holy grail for tech companies,” he said in an emailed response. “You probably don’t know anyone in Beijing that doesn’t have at least one Xiaomi product, be it a mobile phone, computer, TV, purifier, or tablet.” CreditSights, a financial research firm, said it expects Xiaomi's EV division to sell 60,000 vehicles in its first year and lose money for its first two years because of high marketing and promotion costs.
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