Xiaomi Raises Production Forecast Again, Says Will Make 130,000 EVs This Year

Handset maker Xiaomi has significantly increased its electric vehicle (EV) delivery projections, announcing plans to deliver 130,000 vehicles in 2023, marking its third upward revision this year, says a report by news agency Reuters. 

Xiaomi reported a 30.5 per cent revenue surge in the third quarter (Q3), underscoring its rapid expansion into the automotive sector.

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Xiaomi SU7's Demand

Company CEO Lei Jun revealed the increased target on social media, highlighting the overwhelming demand for the company's flagship SU7 sedan. Initially projecting 76,000 units, Xiaomi later scaled up its expectations, thus, reflecting strong market reception.

Xiaomi SU7 Pricing Strategy

The Xiaomi SU7, drawing design inspiration from Porsche, entered the competitive Chinese electric vehicle market with a disruptive pricing strategy. Priced under $30,000, the base model is approximately $4,000 cheaper than Tesla's Model 3 in China, positioning Xiaomi as an attractive alternative for budget-conscious consumers.

China EV Market

China's electric vehicle market continues to demonstrate extraordinary growth, with EV and plug-in hybrid sales now representing over 50 per cent of total automotive sales. October saw a remarkable 56.7 per cent year-on-year increase, marking the fourth consecutive month that battery-powered vehicles outperformed traditional gasoline cars.

To meet growing demand, Xiaomi has doubled production shifts since June and introduced a premium SU7 Ultra model priced at over $110,000. 

Company President Lu Weibing confirmed the manufacturing capacity of 20,000 cars monthly, with potential for further expansion.

"Our investment remains substantial," Weibing emphasised during an earnings call, the report added. 

"We're continuously improving hardware and software, and actively developing research and development for new models, regardless of our ultimate delivery levels."