Xiaomi's entry into the electric vehicle market has begun in full force. The company announced an impressive 88,898 pre-orders for its new SU7 electric saloon just 24 hours after its launch in China. The achievement was accompanied by crowds at test drive events held in 59 shops in 29 cities across the country.

The initial excitement comes with a 5,000 yuan (£550) deposit cost to secure a unit of the SU7. According to homologation records, Xiaomi is partnering with the state-owned Beijing Automotive Industry Holding Co. (BAIC) for production under licence. BAIC Off-road Vehicle Co., a subsidiary of BAIC, will assemble the SU7 at Xiaomi's new factory in Beijing. It's worth mentioning that BAIC is also an important player on the global automotive scene, holding an almost 10 per cent stake in Mercedes-Benz.

Construction of the Xiaomi factory began in April 2022 and was completed in June last year. The company obtained the sales licence for the SU7 in November, with trial production starting in December. Mass production has already begun, but is not yet running at full capacity, with deliveries to customers expected to begin by the end of April.

As reported by CarNewsChina, the first phase of the Xiaomi plant boasts an annual production capacity of 150,000 vehicles, which will double to 300,000 in the second stage. Considering the increase in production, Xiaomi expects to build around 100,000 SU7s by 2024, potentially exceeding that figure if the production lines run smoothly.

The sales success is underpinned by Xiaomi's competitive pricing strategy. The SU7 starts at 215,900 yuan (£23,735). It's worth remembering that the company has stated that it is pricing the entry-level version at cost in a strategy to gain ground. The top-of-the-line SU7 boasts four-wheel drive with two motors that generate a combined 645 PS and an impressive range of 497 miles, thanks to its 101 kWh battery.

With a length of almost 5 metres and a spacious interior, the Xiaomi SU7 looks set to be a strong contender in the electric car market. As production ramps up and deliveries begin, it will be interesting to see if Xiaomi can maintain this strong initial pace.

Source: CarNewsChina Photos: Autohome