(Image source: Xiaomi Auto)
On April 14th, blogger Sun Shaojun revealed the latest situation of Xiaomi Auto SU7 on social platforms: Up to now, the number of locked orders of Xiaomi Auto SU7 has exceeded 60,000, and the large refund rate is about 55%. This means that while sales orders are still growing strongly, there are also more unsubscribes.
How hot is the sales of Xiaomi's first model, SU7? It was officially launched on March 28, and it exceeded 10,000 units in only 4 minutes, 20,000 units in 7 minutes, 50,000 units in 27 minutes, and 88,898 units in 24 hours. On April 3, Lei Jun said that more than 100,000 people have made a big decision in just a few days after Xiaomi SU7 went on sale.
The Xiaomi Auto SU7 has a strong performance in the market, but it also faces challenges such as high chargeback rates and inability to keep up with production capacity. In order to deal with the problem of high chargeback rate, Xiaomi Auto introduced new regulations on April 14, which will start the 24-hour time-limited reconfiguration at 9 am on April 19. Non-founding users who have locked the order can make changes during this period, including the model and so on, but the order will be locked immediately after the change is successful, and there is no hesitation period.
According to the news, the Xiaomi car factory is working hard to increase production capacity, and every 76 seconds it will be able to produce a brand new Xiaomi SU7. According to a research report released by Citigroup, Xiaomi Group's SU7 deliveries may reach 5,000 to 6,000 units in April, and the annual delivery volume will be about 55,000 to 70,000 units. Currently, the Xiaomi SU7 has a waiting time of up to 6 months, and if the production capacity cannot meet the demand, Xiaomi may face growth problems.
According to the research report, Xiaomi will lose an average of 6,800 yuan for each SU7 sold in 2024, and the entire car-making business will lose a total of 4.1 billion yuan.
Backed by Xiaomi Group, one of China's leading technology giants, Xiaomi Auto has an "ecological" advantage that other automakers do not have. Its smart vehicle industry chain ecosystem mainly builds an industrial chain ecology by investing in start-ups, independently develops core technologies such as motors, batteries, large die-casting, intelligent driving, and intelligent cockpits, and cooperates directly with suppliers. Through these three paths, Xiaomi Auto has covered the upstream battery materials, semiconductors and other fields, the midstream electrification system parts, intelligent cockpit systems, intelligent driving systems and other core links, as well as the downstream automotive after-sales service market, to build a comprehensive industrial chain ecosystem.
From the perspective of the distribution of sub-fields in the automotive field and the amount of Xiaomi's investment, there are more sub-fields such as auto parts, integrated circuits, automotive after-sales services, new energy, and autonomous driving, while the sub-fields with a high proportion of the investment amount include new energy, integrated circuits, integrated e-commerce, automobile manufacturing, intra-city logistics, etc.
According to the ranking of China's autonomous driving technology patent applicants, Xiaomi Auto ranked 6th among China's autonomous driving technology patent applicants within three years.
Lei Jun believes that the success of Xiaomi SU7 is essentially the success of Xiaomi's model, the success of Xiaomi's methodology, and in the final analysis, the success of Xiaomi's cultural values.
You Qiang, deputy director of the technical department of the China Association of Automobile Manufacturers and executive deputy secretary general of the software branch, believes that the entry of cross-border manufacturers like Xiaomi has put pressure on many traditional car manufacturers. In fact, Xiaomi's entry into the automotive field will reshape the entire industry landscape. This is because Xiaomi Auto has obvious advantages in terms of software and ecology. With the improvement of software intelligence and algorithms, consumer expectations for cars will also increase again. However, we also need to see if Xiaomi Auto will be able to steadily increase sales in the next three to six months. He believes that this is the key to the sustainable development of Xiaomi Auto.
Goldman Sachs released a research report saying that it is optimistic about Xiaomi's electric vehicle strategy and believes that Xiaomi Auto has the ability to become a potential price leader in the market. Xiaomi's electric vehicles are expected to incur an operating loss of about 12 billion yuan in 2024 but be profitable in 2028.
Prospective Economist APP Information Group
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