It is clear that Xiaomi’s entry into the electric car market has caused an earthquake that is very difficult for other manufacturers to stop, and Xiaomi SU7 continues to cause an earthquake in China. Obviously, the main reason for this The starting price barely exceeds 27,000 euros at exchange ratebut this is unsustainable in the long run.

In fact, Xiaomi’s Chief Financial Officer Alain Lam confirmed in an interview with Bloomberg that the brand’s current strategy regarding electric cars is as follows: Prioritize business expansion over profitability Vehicle sales show this, so it will take a long time for the losses to stop.

“We are currently far from what we call profitability”

If you want to fight the big guys, you should first try to become one of them with a super aggressive pricing strategy. This is something that Xiaomi has already received very good marks with its mobile phonesIt entered the market with an incredible quality-price ratio and after it took its name, it started to become profitable with its models that today exceed 1,000 Euros.

In fact, if we evaluate the price of Xiaomi SU7 compared to its competitors, we are talking about an electric sedan with close to 300 horses, not reaching 30,000 euros, and this is something that no other brand can adapt to. According to Bloomberg, this strategy led Xiaomi to the following conclusion: Approximately €7,500 loss per unit sold It’s in the second quarter of 2024, so they’re still far from profitable.

The brand is currently in the trial phase increase your production capacity and once all processes are optimized we start expanding across Europe and making money from every unit sold. Now we have to wait and see what direction the company takes next, but it is clear that what they are doing is a real revolution in an extremely competitive market.

via | Bloomberg, Motor.es

Xiaomi World | Xiaomi has found the formula to speed up the arrival of SU7 in Europe. They have been doing this with mobile phones for years and the result is the same