Beijing, March 28, 2024 – In a bold prediction during the launch of Xiaomi’s latest automotive venture, company founder Lei Jun stated that only 5-8 new energy vehicle (NEV) manufacturers will survive the fiercely competitive market. Speaking at the Xiaomi Car launch event in Beijing, Lei confidently declared that his company’s new model, the Xiaomi SU7, achieved over 10,000 pre-orders in just four minutes, with the figure doubling to 20,000 within seven minutes.
The Launch and the Numbers
The Xiaomi Car launch event, held on March 28, marked a significant milestone for the tech giant as it ventured into the automotive industry. During the post-launch press conference, Lei Jun shared the impressive pre-order figures, highlighting the strong consumer interest in Xiaomi’s foray into electric vehicles. The rapid pace of pre-orders suggests a promising start for the company’s new model.
Market Competition
Lei Jun, known for his straightforward and candid approach, did not shy away from addressing the intense competition in the NEV market. Is the price war in the car industry more intense than in the smartphone industry? We’ve been through thick and thin in the smartphone market, and we’ve emerged as the ‘King of Competition.’ Do we fear it? he asked rhetorically.
The Chinese market currently has over three to four hundred NEV manufacturers, but Lei predicts a significant consolidation in the coming years. In this battlefield, only 5 to 8 companies will survive, he stated. Xiaomi’s entry into the market comes with a sense of determination, as Lei put it, We have already started with a do-or-die attitude.
Xiaomi’s Strategy
Xiaomi’s strategy in the NEV market is built on its strengths in technology and innovation. The company aims to leverage its expertise in consumer electronics to create smart, connected, and affordable electric vehicles. With a focus on software and hardware integration, Xiaomi is positioning itself as a disruptor in the automotive industry, much like it did in the smartphone market.
Lei Jun’s comments reflect the company’s confidence in its ability to navigate the challenges of the NEV market. We are not new to the game of competition. We thrive on it, he emphasized. Xiaomi’s approach to the NEV market is to create products that cater to the needs of the masses, offering value for money without compromising on quality or technology.
The Road Ahead
As Xiaomi steps into the NEV market, it faces stiff competition from established players like Tesla, NIO, and BYD, as well as a host of emerging startups. The road ahead is undoubtedly challenging, but Lei Jun’s prediction of market consolidation suggests that only the strongest will survive.
The success of Xiaomi’s SU7 and its ability to sustain consumer interest will be crucial in determining the company’s position in the NEV market. With its track record of innovation and consumer-centric approach, Xiaomi is well-positioned to make a significant impact in the electric vehicle industry.
Conclusion
Lei Jun’sbold prediction of a market shakeout in the NEV industry highlights the intensity of competition and the need for companies to innovate and differentiate themselves. As Xiaomi gears up to challenge the status quo, its success will be closely watched by industry observers and competitors alike. The next few years will be critical in determining the survivors in the NEV market, and Xiaomi is determined to be one of them.
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