Xiaomi's Automotive Journey: Disrupting the Market and Paving the Way for the Future

In March 2021, Xiaomi made headlines by entering the automotive manufacturing sector, garnering widespread attention.

On March 19, 2024, Xiaomi released its 2023 annual and fourth-quarter performance report. In 2023, Xiaomi Group's total revenue amounted to 271 billion yuan, marking a 3.2% decline year-on-year. It's noteworthy that Xiaomi has seen two consecutive years of revenue decline, with a 14.7% decrease in total revenue in 2022. This decline is mainly because Xiaomi's other businesses have continually supported Xiaomi Automotive, which bears significant responsibilities.

On March 28, 2024, Xiaomi Automotive officially launched. Over the past three years, Xiaomi's commitment to the automotive manufacturing industry has been evident. By July 2024, Xiaomi Automotive had established 59 stores across 29 cities nationwide, offering static vehicle experience services.

Let us focus on a critical question: During the 2023 annual speech, Lei Jun emphasized that the high-end market is crucial for Xiaomi's growth, describing it as a life-and-death battle. Will Xiaomi's three-year venture into car manufacturing yield a perfect outcome?

From the five core technologies showcased at Xiaomi Automotive's official launch event, we can gain insights:

Motors: Including V6/V6s and V8s. Notably, the V8s stands out with a remarkable 27,200 rpm, slated for release in 2025; V6/V6s boast 21,000 rpm, representing a high industry standard.

Batteries: CTB integrated batteries, theoretically offering a CLTC range of over 1,200 km but currently achieving 1,000+ km in a mature system, with an integrated efficiency of 77.8%, surpassing BYD's 66%, and featuring an ASIL-D self-developed battery management system.

Super Large Die-Casting Technology: Self-developed 9,100t super large die-casting technology, reducing production time by a substantial 45%, surpassing Tesla's 9,000t and lower than Xiaopeng's 12,000t.

Intelligent Driving: Adaptive zoom BEV technology, perceiving grid 0.05m-0.2m, recognition range 5cm-250m; powered by two NVIDIA Orin chips with a combined computational power of 508 TOPS. It incorporates 1 LiDAR, 11 HD cameras, 3 millimeter-wave radars, and 12 ultrasonic radars (Max version model). The goal is to join the industry's top tier by 2024, with plans to launch NOA (Navigate on Autopilot) in 100 cities by year-end.

Intelligent Cockpit: Xiaomi's vibrant OS visual design language, equipped with a 16.1-inch 3K ultra-clear central control screen, 56-inch HUD head-up display, and 7.1-inch flip-up instrument screen. The rear seats can be connected to a Xiaomi Pad for synchronized interaction among five screens.

Since its launch, Xiaomi Automotive has continued to receive significant public and media attention. Industry experts and customers alike have praised the innovative technologies and competitive pricing of Xiaomi's vehicles. Many have highlighted the impressive performance metrics and advanced features that set Xiaomi Automotive apart from its competitors.

Xiaomi Automotive's suppliers include global giants like NVIDIA, Qualcomm, Bosch, Brembo, and CATL, along with over 40 domestic industry partners. NVIDIA provides autonomous driving chips, while Qualcomm supplies intelligent cockpit chips. Additionally, Xiaomi has developed its brand-new super 800V silicon carbide high-voltage platform.

Regarding traditional hardware, Xiaomi Automotive often collaborates directly with suppliers. According to Ministry of Industry and Information Technology disclosures, the dual-motor version of Xiaomi Automotive is provided by Huichuan Technology, the single-motor version by Lian Di Technology, and the lithium iron phosphate battery by Xiangyang Fredi Battery, while the ternary lithium battery is supplied by CATL.

In terms of performance, the Xiaomi SU7 dual-motor version boasts a maximum power of 673 horsepower, accelerates from 0 to 100 km/h in 2.78 seconds, equipped with a 101 kWh CATL ternary lithium battery providing a CLTC range of 800 km. The single-motor version reaches a maximum power of 299 horsepower, accelerates from 0 to 100 km/h in 5.28 seconds, and carries a 73.6 kWh Fredi lithium iron phosphate battery with a CLTC range of 668 km.

Unlike traditional automakers, Xiaomi represents a new breed, boasting greater visibility, market appeal, and user base. In addition to Xiaomi's strategic vigor, its ecosystem synergy holds immense potential for Xiaomi Automotive's future. While Xiaomi's entry into car manufacturing came relatively late, the entire Xiaomi ecosystem has long been involved in the automotive industry chain.

In the short term, Xiaomi disrupts the entire Chinese automotive market. However, in the long run, the entry of disruptive players like Xiaomi is essential to fostering a healthy competitive environment, paving the way for the future development of the Chinese automotive market.