Xiaomi, a Chinese smartphone company, is scheduled to start accepting orders on Thursday and introduce its first electric vehicle ( EV ).
Its chief executive Lei Jun said this week that the Speed Ultra 7 ( SU7 ) would be priced below 500, 000 yuan ($ 69, 186, £54, 836 ).
The tech giant will compete with rivals like Tesla and BYD in the walk.
Xiaomi’s entrance into the electric vehicle industry comes at a time when global sales growth has slowed, causing a price war.
The company hopes that existing customers may find the SU7’s shared working system appealing with its phones, laptops, and other products.
Xiaomi has a market share of approximately 12 %, making it the third-largest smartphone seller worldwide, according to Prelude study.
A flower in Beijing, which can create up to 200 000 automobiles annually, will operate the system of state-owned automobile manufacturer BAIC Group.
The greatest progress would be to show that there is a consumer marketplace for Xiaomi as a bright EVs brand, according to Bill Russo of Automobility.
Mr. Russo added that while Apple did not observe enough possible in the EV market outside of China, Xiaomi’s entrance into the automobile industry reflects its trust in” the relevancy for their model” in China.
Xiaomi has said it will invest$ 10bn ( £7.9bn ) in its vehicles business over the next 10 years.
According to research company Rystad Energy,” The Chinese EV industry is very sophisticated and creates a very steady habitat for the EV producers.”
” For instance, the power supply chain is very strong, and the nation’s charging community is expanding to meet the expanding EV feed.”
The release of Xiaomi’s second vehicle comes as a price war in China’s EV industry has been intensifying.
In recent months, regional rivals like the nation’s top-selling Vehicle manufacturer BYD have slashed the cost of their cars in China thanks to multi-billionaire Elon Musk’s leadership.
Xiaomi is one of the few fresh potential entrants to receive approval from the authorities as officials try to stop a storm of newcomers because the nation’s largest car market is already saturated.
BYD reported record quarterly profits earlier this month, but it claimed progress had slowed toward the finish of last year.
As buyers tightened their spending as China’s economy’s growth weakens, Shanghai-based electric vehicle manufacturer Nio on Wednesday cut its forecast for first-quarter sales.
Tesla, the world’s largest electric car manufacturer, will release its delivery dates for the first three weeks of 2024 the following year.
Governments around the world are repressing exports of foreign-made electric vehicles at the same time.
Beijing started a WTO-based debate lawsuit proceeding on Tuesday to challenge the US’s “discriminatory subsidies” under the US Inflation Reduction Act.
In addition, the European Union has launched an investigation into whether Chinese state subsidies have allowed Chinese electronic vehicle manufacturers to devalue European-made models.