Less than ten years ago, products labeled as Made-in-China, including cars from manufacturers like Geely Auto, were often viewed as inferior imitations of Western designs. Now, Geely boasts a significant global presence and is recognized for its innovative contributions, similar to other major Chinese car companies like BYD Co., which are poised to surpass their Western counterparts.
Another success story is Xiaomi Corp., initially known for its budget smartphones, now venturing into the electric vehicle market aiming to rival Tesla. This shift coincided with Apple's decision to halt its electric vehicle project, a move that underlines the increasing assertiveness of Chinese firms as their American counterparts seem to stumble in technological advancements.
In a surprising turn of events reported by Reuters in February, Apple scrapped its long-standing project to develop an electric car, an initiative that would have marked the tech giant’s entry into a new industry. Launched around 2014, the project aimed at creating a fully autonomous electric vehicle but faced numerous challenges, leading to changes in leadership and strategy. Concerns about profitability led to the project's cancellation, despite a vision of a car with luxury features and a price tag around $100,000.
Xiaomi, a well-known brand for its smartphones and appliances, is making strides in the electric vehicle sector. According to Reuters, Xiaomi sold over 7,000 units of its first vehicle, the SU7 sedan, in April alone. With a starting price under $30,000, it’s more affordable than Tesla’s Model 3 in China, and Xiaomi plans to sell upwards of 100,000 vehicles this year. Bloomberg reported that Xiaomi is planning to introduce an SUV by 2025, significantly expanding its $10 billion electric vehicle initiative led by co-founder Lei Jun.
Lei Jun, co-founder and CEO of Xiaomi, is often compared to Steve Jobs. Known for elevating Xiaomi from a startup to a major electronics player, Lei has been affectionately nicknamed "Thor" by his followers, a nod to his last name which means thunder in Chinese. Reuters noted that Lei's appearance and charisma remind many of Elon Musk. Lei’s commitment to the electric vehicle market was highlighted when he announced the project in 2021, calling it his "last major entrepreneurship project." He acknowledged the crucial support from Beijing authorities, reminiscent of the aid Musk received from Shanghai officials for Tesla's factory there.
While opinions vary on whether Xiaomi's foray into the premium EV market will be profitable, Lei remains optimistic. As per consultancy founder Tu Le, Xiaomi's challenge will be maintaining focus in a fiercely competitive market. Nonetheless, Lei is confident in Xiaomi’s financial reserves to navigate the competitive landscape over the next five years.
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