The pricing of Xiaomi's first mass-produced model has aroused heated discussions in the market, can high cost performance shake the pattern of traditional car companies?
In 2024, the pricing of the highly anticipated Xiaomi Auto's first mass-produced model has finally been announced. The price range of 215,900-289,900 yuan is comparable to the compact SUV of the joint venture brand and the mid-to-high-end SUV of the independent brand, and the cost performance advantage is obvious. This people-friendly pricing strategy is considered to be the practice of Xiaomi's founder Lei Jun's commitment to "make everyone affordable to use a good car", and it also reflects Xiaomi's consistent cost-effective line. It is generally believed in the industry that Xiaomi's move is intended to quickly open up the market and seize the opportunity through price advantages. However, whether Xiaomi Auto can shake the market position of traditional car companies with its cost-effective advantage alone remains to be tested by the market.
The initial price of Xiaomi Auto is in the range of 215,900-289,900 yuan, and a total of 4 models will be launched. Compared with the price of more than 300,000 yuan for models of the same level of joint venture brands, Xiaomi cars undoubtedly have more advantages in price. Compared with mid-to-high-end SUVs of independent brands such as BYD and NIO, the price of Xiaomi cars is also more competitive. Such a pricing range makes Xiaomi cars more attractive to consumers, especially for young consumers who pursue cost-effectiveness. It is foreseeable that the affordable price will win more attention and early adopters for Xiaomi cars.
Xiaomi's pricing strategy is considered to be the fulfillment of Lei Jun's promise to "make a good car affordable for everyone". Lei Jun has publicly stated many times that Xiaomi's goal is to produce a high-quality, cost-effective car that more people can afford. The pricing of Xiaomi's first model is the fulfillment of this promise. The starting price of 215,900 yuan is much lower than the industry's previous expectation of more than 300,000 yuan, reflecting Xiaomi's original intention of making cars "born for fever". Such a pricing strategy is exactly the same as the cost-effective route at the beginning of the rise of Xiaomi mobile phones, which can be described as a continuation of Xiaomi's genes.
Judging from the market reaction, the pricing of Xiaomi cars has sparked heated discussions online. Many netizens believe that the cost-effective positioning of Xiaomi cars is expected to stir up a pool of spring water for traditional car companies. A netizen commented: "With the disruptor of Xiaomi Automobile, I am afraid that the life of traditional car companies will not be easy." Some industry analysts pointed out that there is still a big gap between Xiaomi Auto and traditional car companies in terms of brand awareness and sales channels, and it may take a lot of hard work to continue to maintain competitive advantages in the future.
It is true that if Xiaomi Auto wants to shake the market position of traditional car companies, it is not enough to rely on cost-effective advantages. Brand building, channel construction, after-sales service, etc., are all shortcomings that Xiaomi Auto must make up. As an Internet company transforming into a car, Xiaomi is a newcomer in the field of automobile manufacturing, and it remains to be seen whether it can withstand the test of the market in terms of supply chain management, production technology, quality control, etc. In addition, it is also unknown whether Xiaomi Auto can replicate the Internet marketing model of Xiaomi mobile phones and quickly accumulate users.
In the long run, if Xiaomi Auto wants to gain a firm foothold in the market, the key lies in product strength. Cost performance is just the golden key to knock on the door of the market, if you want to expand the territory, you need to come up with excellent product strength. Xiaomi Auto has a layout in emerging technologies such as intelligent networking and autonomous driving, but it will take time to form a leading edge. It can be said that Xiaomi's current people-friendly pricing strategy is only the first step in its seizure of the automobile market, and it remains to be seen whether it can become a changemaker in the industry in the future.
All in all, the first mass-produced model of Xiaomi Auto has a price range of 215,900-289,900 yuan, which has sparked heated discussions in the market with its excellent cost performance. This pricing strategy is seen as the fulfillment of Lei Jun's promise to "make a good car affordable for everyone" and a continuation of Xiaomi's DNA. However, whether Xiaomi Auto can shake the market position of traditional car companies still depends on its continuous efforts in brand building, channel construction, after-sales service, etc., as well as innovative breakthroughs in emerging technologies such as intelligent networking and autonomous driving. It can be said that the price of being close to the people is only the starting point of the overtaking of Xiaomi cars in corners, and there is still a long way to go. It remains to be seen whether Xiaomi Auto can become a game-changer in the automotive industry.