XIAOMI GETS OVER 70,000 ORDERS FOR FIRST EV

Xiaomi secured lock-in orders of more than 70,000 SU7 cars as of Saturday, its founder Lei Jun told an investor conference on Tuesday.

The Chinese smartphone maker targets deliveries of more than 100,000 SU7 cars in 2024, Xiaomi President Lu Weibing said on his Weibo account, relaying key takeaways from Lei at the investor event.

Last week, Weibing said the company began delivering standard versions of the so-called SU7 to buyers ahead of schedule.

Xiaomi launched its car, which draws styling cues from Porsche, late last month, entering a crowded China EV market with an attention-grabbing price tag - under USD 30,000 for the base model, which is USD 4,000 cheaper than the base model of Tesla's Model 3 in China.

Xiaomi has deep pockets and has said it expects to lose money on the SU7.

It started some deliveries from a limited batch of 5,000 cars it had already produced - called the "Founder's Edition," equipped with additional accessories for early buyers on April 3 but Thursday marked the beginning of deliveries of the SU7's standard version in Beijing and Shenzhen.

Besides the Standard version, Xiaomi previously said it plans to start deliveries of Max models this month and Pro models by the end of May.

The debut of Xiaomi's EV has caused waves within the Chinese market, with other Chinese EV brands with comparable models announcing price cuts and subsidies after its launch.

While the world's largest auto market is challenging for newcomers due to a cut-throat EV price war and slowing demand, analysts have said Xiaomi has deeper pockets than most EV startups and its smartphone expertise gives it an edge in smart dashboards - a feature prized by Chinese consumers.

Analysts predict that losses on the SU7 could be substantial. Based on a projected volume of 60,000 units this year, Citi estimates the SU7 could generate a net loss of 4.1 billion yuan, or an average 68,000 yuan per car.