Xiaomi's SUV Orders Surge 289,000 in an Hour, Outpacing Apple's EV Struggles

Lei Jun, the founder and chairman of Xiaomi Corp., took a subtle jab at Apple during the launch event of Xiaomi's second electric vehicle, a sleek SUV, in Beijing. He noted that Xiaomi has been paying special attention to Apple users, allowing them to seamlessly sync their iPhones with Xiaomi vehicles. This comment was a thinly veiled reference to Apple's failed decade-long, $10 billion Project Titan, which aimed to develop a fully autonomous vehicle but ultimately faltered.

Following his remark, Lei announced that more than 289,000 orders for the SUV were placed within an hour, surpassing the demand for the SU7 sedan introduced in March 2024. This impressive order volume underscores Xiaomi's success in the electric vehicle market, contrasting sharply with Apple's struggles. Xiaomi's pragmatic approach, which blends Tesla- and Porsche-inspired designs with affordability, has proven more effective than Apple's high-concept, constantly shifting EV goals.

China's mature EV ecosystem has given Xiaomi a significant advantage that Apple never had. This includes abundant subsidies, a robust charging infrastructure, and a ready supply chain. According to a managing director of a consultancy, Lei and Xiaomi's charisma, brand recognition, and ecosystem are key factors in their success. Young consumers who are already loyal to Xiaomi naturally consider it when buying EVs.

However, car manufacturing presents far greater challenges than smartphones or gadgets, including regulatory compliance and geopolitical considerations. Xiaomi is one of the first tech giants to venture fully into car production, and its journey has involved tapping into China's automaking talent pool, visiting companies like Geely and Great Wall, and poaching top talent from BAIC, BMW, and SAIC-GM-Wuling. Among the key hires was Hu Zhengnan, formerly of Geely, who played a crucial role in the development of the SU7.

Xiaomi's approach to carmaking has been focused and frugal, with Lei calling it his "last entrepreneurial project." The company has pursued aggressive recruitment and built deep ties across the EV supply chain, investing over $1.6 billion in over 100 component manufacturers between 2021 and 2024. This investment ensures control and insulation from supply chain disruptions that once plagued its smartphone business. Xiaomi even constructed its own EV plant, bypassing the contract manufacturing route taken by peers like Nio and Xpeng.

Despite its success, Xiaomi's ascent hasn't been without criticism. The SU7 has been dubbed the "Porsche Mi" for its familiar design, and there have been concerns about safety following a fatal accident involving the SUV while its assisted-driving system was active. However, the SU7 remains a top seller, driven by Xiaomi's loyal fanbase, known as "Mi Fans." A significant number of older buyers are purchasing the SU7 for their children, highlighting the model's trust factor.

For 2025, Xiaomi has raised its delivery target to 350,000 vehicles, fueled by the SUV's popularity and the newly introduced YU7. Starting at $30,100 for the SU7 and $35,000 for the SUV, Xiaomi's vehicles are price-competitive with Tesla's offerings. Its EV unit is projected to become profitable in the second half of 2025. However, the scale of Xiaomi's operation is small compared to giants such as BYD, Tesla, or Toyota. Having no offering in the mainstay sub-$20,000 market, which firms like BYD currently control, would see Xiaomi become a boutique brand for the rich, much like Tesla.

Lei Jun is in an expansionist mood globally. He has recently stated that Xiaomi could start overseas car sales as soon as 2027, from an R&D center in Munich with potential launches in Germany, Spain, and France, even as tariffs on Chinese EVs go up in the US, the EU, and Turkey. Lei acknowledges that Xiaomi is a late entrant to the auto business but believes there is always potential for latecomers in a technology- and innovation-driven market.