(Image source: Photo.com)
On May 1, Lei Jun, founder, chairman and CEO of Xiaomi Group, posted on Weibo that he would like to report good news to everyone, as of 24 o'clock on April 30, Xiaomi SU7 delivered 7058 units in April. Lei Jun said: "This is the result of delivery in the first month after the release, and we have truly achieved "delivery when it is listed, and delivery is on the volume". At the same time, the cumulative number of locked orders has also reached an astonishing 88,063 units. We are making every effort to expand production capacity and accelerate delivery to ensure that we can complete the task of delivering 100,000 units this year!"
According to the official data of Xiaomi Auto, among the lock users of Xiaomi SU7, female car buyers account for 28%, BBA owners account for 29%, and Apple users account for 52.5%. It can be seen that Xiaomi cars have a strong attraction in the female market, as well as the high-end market is also competitive.
In the face of the rapid growth of deliveries, Lei Jun said that the main challenge at present lies in the expansion of production capacity. According to some sources, the official average daily production capacity has increased to more than 400 vehicles, and the annual production capacity is expected to reach 120,000 vehicles.
Lei Jun said that the world's pure electric models, except for Tesla, everyone is losing money, and it is ridiculous to lose more than 100,000 yuan to sell a car, and Xiaomi SU7 has a medium to small loss. He revealed that the gross profit margin of Xiaomi SU7 is expected to be between 5% and 10%, which is based on the in-depth analysis and control of the cost of R&D, production, sales and other links.
Lei Jun said that according to the current market response and forecast, the annual sales of Xiaomi SU7 will not be profitable until it reaches 300,000 or 400,000 units.
Lei Jun said that the Xiaomi SU7 is three to five times more successful than he imagined. Xiaomi SU7 was officially launched on March 28, as the first answer sheet of Xiaomi in the past three years, its success is not only an affirmation of the hard work of the Xiaomi car team, but also a successful verification of Xiaomi's model, methodology and cultural values.
Talking about the strategic significance of the success of Xiaomi SU7, Lei Jun believes that Xiaomi SU7 has made Xiaomi realize a closed loop in the whole ecology of people, cars and homes, and at the same time has also made important breakthroughs in product aesthetics and the female market. What's more, the success of the Xiaomi SU7 is a testament to Xiaomi's organizational ability and execution.
Looking back at Xiaomi's road to car manufacturing:
In 2021, Xiaomi announced the construction of a car
On March 30, 2021, Xiaomi Group announced that it intends to establish a wholly-owned subsidiary of the company to be responsible for the smart electric vehicle business. The initial investment is 10 billion yuan, and the investment is expected to be 10 billion US dollars in the next 10 years. At this point, Xiaomi's car-making plan has settled.
Investments in the battery sector include a number of industry giants
Xiaomi's investment layout in the field of new energy batteries shows a steady and far-reaching strategy. Since 2017, the company has invested in the field of new energy batteries for the first time. Subsequently, in 2018, Xiaomi increased its investment in Zhuhai Guanyu, further consolidating its position in the battery field. In 2020, Xiaomi Yangtze River Industry Fund and Sequoia Capital jointly invested in AVIC Lithium Battery.
Especially in 2021, with Xiaomi's official announcement of its entry into the automobile manufacturing industry, the pace of its investment in the field of new energy batteries has accelerated significantly. In this year, Xiaomi not only participated in the financing project of Ganfeng Lithium Battery, but also invested in Honeycomb Energy. This series of actions shows Xiaomi's attention and investment in the field of new energy vehicle batteries.
On the whole, Xiaomi's investment goals in the battery field cover a number of industry giants in the field of new energy batteries. This investment strategy has not only brought considerable investment returns to Xiaomi, but also stabilized its core supply chain in the process of building cars.
The layout of the five core technologies of Xiaomi Automobile
In addition to investing in the layout of the industrial chain through equity participation, Xiaomi focuses on the five core links of automobiles, such as motors, batteries, large die-casting, intelligent driving, and intelligent cockpits, and carries out technical breakthroughs to build the core competitiveness of automotive products. Specifically, in the motor sector, the super motor V6 and V6s jointly developed by Xiaomi, Inovance Technology and United Automotive Electronics have caught up with Porsche and Tesla in terms of speed and power density, while the V8s independently developed and produced by Xiaomi has a speed of 27200 rpm and a motor power density of 10.14kw/kg, which is expected to be launched in 2025; In the battery sector, Xiaomi has developed CTB integrated battery technology and the industry's first cell inversion technology to improve the space utilization rate of the battery pack by 77.8%; In the large die-casting link, Xiaomi independently designed a 9,100-ton integrated large-scale die-casting equipment cluster system, and completed the self-research of a full set of processes and standards for large-scale die-casting, and at the same time self-developed the high-strength, high-toughness, heat-free and heat-free environmentally friendly die-casting material "Titan Alloy", becoming the only domestic automobile manufacturer with self-developed large-scale die-casting materials that can be mass-produced; In the intelligent driving sector, Xiaomi's full-stack self-developed intelligent driving technology has improved the perception and recognition technology through three technologies: adaptive zoom BEV technology, road large model, and super-resolution occupancy network technology, and the current intelligent driving exclusive team size exceeds 1,000 people. In the intelligent cockpit link, Xiaomi is based on Xiaomi Surging OS to create a closed loop of people, vehicles and homes.
Orient Securities has positive expectations for Xiaomi's car manufacturing, believing that Xiaomi has significant competitive advantages in many aspects such as brand, ecology, intelligent driving layout, and sales channels. The strong drainage ability of the Xiaomi brand, the solid channel foundation and the unique "people-car-home ecology" strategy have added expectations to the sales prospects of Xiaomi automobiles. If Xiaomi Auto can continue to increase volume, it is expected that related enterprises in the industrial chain will also benefit from this, and its profitability is expected to improve.
CITIC Securities' research report is also optimistic about Xiaomi's development in the smart car market. The report points out that Xiaomi's advantages in supply chain, users, ecology, channels and other aspects will help it occupy a place in the highly competitive smart car market. CITIC Securities expects that Xiaomi is expected to achieve the goal of annual sales of 100,000 units and positive gross profit faster than other new automakers, which will further open up its significant incremental valuation space. In addition, CITIC Securities continues to be optimistic about the successful launch and rapid growth of Xiaomi's smart cars, and expects that this new field will bring a new growth curve and valuation improvement for Xiaomi, especially after the mobile phone, automobile, smart home and other businesses are fully opened, Xiaomi will show a stronger value of integration.
Prospective Economist APP Information Group
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