Behind the high unsubscribe rate of Xiaomi SU7: opportunities and challenges for Xiaomi Auto
As a well-known technology brand in China, Xiaomi has begun to set foot in the field of car manufacturing in recent years. In 2024, Xiaomi Auto's first mass-produced model, the Xiaomi SU7, will be officially launched, and this electric vehicle, which is positioned as a mid-to-large SUV, has attracted attention for its excellent product strength. However, what is surprising is that although the Xiaomi SU7 has accumulated about 2,000 units in the average store of Xiaomi Home after its launch, the cancellation rate is as high as 40%. This phenomenon has sparked a discussion in the industry about the development prospects of Xiaomi cars. This article will analyze the reasons for the high unsubscribe rate of Xiaomi SU7 from multiple perspectives, and discuss the opportunities and challenges faced by Xiaomi Auto in the electric vehicle market.
Let's take a look at the Xiaomi SU7 model. Xiaomi SU7 is positioned as a medium and large SUV, using dual-motor all-wheel drive, with a maximum power of 673 horsepower, acceleration to 100 kilometers in only 2.78 seconds, and a cruising range of more than 600 kilometers. The Xiaomi SU7 also offers a variety of color and interior options, with a number of active safety features as standard, such as AEB automatic emergency braking, ACC adaptive cruise control, and more. From the perspective of product parameters, Xiaomi SU7 is undoubtedly a powerful electric SUV, with strong competitiveness in the same class of models.
However, the excellent product power did not bring the expected sales performance for the Xiaomi SU7. After its launch, the Xiaomi SU7 has accumulated about 2,000 units in the average Xiaomi Home store, a figure that seems good at first glance, but then comes a high unsubscribe rate of up to 40%. This means that nearly half of the consumers who pre-ordered the Xiaomi SU7 eventually chose to unsubscribe, which is undoubtedly a warning for a new model that has just been launched.
So, what is the reason for the high unsubscribe rate of Xiaomi SU7? The industry generally believes that the pricing strategy may be one of the main reasons. The price range of Xiaomi SU7 is 30-400,000 yuan, although it has certain advantages over fuel models of the same level, but compared with head electric vehicle brands such as NIO and Ideal, this price has no obvious advantage. For consumers who are accustomed to Xiaomi's cost-effective positioning, the pricing of the Xiaomi SU7 may exceed their psychological expectations. The electric vehicle market is becoming increasingly competitive, and strong competitors such as Tesla and BYD have also put a lot of pressure on the Xiaomi SU7.
In addition to the pricing factor, Xiaomi Auto also needs to be improved in terms of marketing strategy. As a new force in car manufacturing, Xiaomi Auto still lacks experience in brand building, channel expansion, and user operation. Compared with traditional car companies and leading electric vehicle brands, Xiaomi Auto has not invested enough in marketing and promotion, which has affected the market performance of Xiaomi SU7 to a certain extent.
In the face of a high unsubscribe rate, Xiaomi Auto needs to adjust its strategy in a timely manner. Xiaomi Auto should re-examine the pricing strategy of the Xiaomi SU7 and adjust the price appropriately according to market feedback and competing products to improve the cost-effective advantage of the product. Xiaomi Auto should increase marketing and promotion efforts, and improve the market exposure and awareness of Xiaomi SU7 through multi-channel and multi-form marketing activities. At the same time, Xiaomi Auto also needs to strengthen communication and interaction with users, and improve user satisfaction and brand loyalty through perfect after-sales service and user operation.
In the long run, if Xiaomi Auto wants to gain a firm foothold in the electric vehicle market, it also needs to continue to make efforts in product strength. On the one hand, Xiaomi Auto should increase R&D investment, make breakthroughs in intelligence, battery technology, autonomous driving and other fields, and continuously improve product competitiveness. On the other hand, Xiaomi Auto should enrich its product matrix and launch models covering different market segments to meet diversified consumer needs. Only by going hand in hand in the two dimensions of product power and marketing can Xiaomi Auto break through in the fiercely competitive electric vehicle market.
The high unsubscribe rate of the Xiaomi SU7 reflects the challenges faced by Xiaomi Auto after entering the electric vehicle market. As a new force in car manufacturing, Xiaomi Auto still has some deficiencies in product pricing and marketing strategies, which need to be continuously adjusted and optimized in practice. But at the same time, Xiaomi Auto also has huge development opportunities. With the rapid growth of the electric vehicle market, consumers' demand for smart electric vehicles continues to increase, which provides a broad market space for Xiaomi Auto. If Xiaomi Auto can learn the lessons of Xiaomi SU7 and continue to make efforts in product strength and marketing, I believe that Xiaomi Auto will be able to achieve more brilliant results in the future competition in the electric vehicle market.