China’s Xiaomi to deliver 1st EV model in March

Xiaomi, China’s fifth-largest smartphone maker, will begin delivering its first electric vehicle (EV) model, the SU7, this month, Reuters reported on Tuesday.

The company will take orders through its 59 stores in 29 cities nationwide, with a launch event scheduled for March 28 to reveal the pricing. Xiaomi’s shares surged seven per cent in morning trade following the news.

China’s electric vehicle sales increased by 18 per cent in January-February period, with a recent trend of price cuts by market leader BYD to attract consumers in a slowing domestic market.

Xiaomi aims to become one of the top five automakers globally with the introduction of the SU7 sedan, featuring advanced electric motor technology for high acceleration speeds.

The car will leverage Xiaomi’s popular operating system and appeal to its existing customer base. Xiaomi’s foray into the EV market comes as it diversifies beyond smartphones, with plans to invest $10 billion in the auto sector over the next decade.

Production of its vehicles will be handled by a unit of state-owned BAIC Group in Beijing, with an annual capacity of 200,000 vehicles.