Lei Jun Says Xiaomi Has Finished R&D on Next-Generation SU7 — A Signal the Tech Giant Means Business in EVs

Xiaomi founder Lei Jun said R&D for a next-generation SU7 electric sedan is finished and indicated he intends to buy the model. The announcement underscores Xiaomi’s push to accelerate product cycles and leverage its software and AI strengths in a crowded Chinese EV market, while highlighting the broader challenge of converting consumer-electronics credibility into long-term automotive trust.

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Key Takeaways

  • 1Lei Jun announced that R&D on a new-generation Xiaomi SU7 electric sedan is complete.
  • 2Lei Jun plans to purchase the new SU7; he currently drives the YU7.
  • 3Xiaomi is emphasising software-led features such as voice-assistant security tied to owner voiceprints.
  • 4The move comes as Xiaomi seeks to consolidate gains in a crowded Chinese EV market while addressing quality, after-sales and resale-value concerns.
  • 5Commercial success will hinge on production scale, reliability and Xiami’s ability to translate consumer-tech strengths into automotive trust.

Editor's
Desk

Strategic Analysis

Xiaomi’s declaration that SU7 development is finished is more than a product update; it signals the company’s intent to move from experimentation to a rhythm of automotive iterations common in the smartphone industry. That strategy plays to Xiaomi’s strengths in software, user interfaces and ecosystem services, enabling potential revenue streams beyond vehicle sales. Yet cars are fundamentally different from phones: they require longer warranties, deeper safety validation and robust dealer and service networks. If Xiaomi can marry its fast-update culture with the industrial discipline of carmaking — reducing recalls, stabilising delivery volumes and improving resale values — it could pressure incumbents on price and feature-set. Failure to do so would expose the limits of a tech-led approach in a sector where consumer trust is slow to build and fast to erode.

China Daily Brief Editorial
Strategic Insight
China Daily Brief

Xiaomi founder Lei Jun has announced that the research and development work on a new generation of the company’s SU7 electric sedan is complete. The comment, made during a public appearance and discussed widely on Chinese tech platforms, marks a fresh milestone for Xiaomi’s auto unit as it moves from product launch cycles toward more frequent updates and tighter integration with the group’s consumer-electronics ecosystem.

Lei Jun also revealed a personal endorsement: he plans to buy the new-generation SU7 as his next car while currently favoring another Xiaomi model, the YU7, for daily driving. That private vote of confidence comes amid an intense public conversation in China about Xiaomi’s rapid pivot from smartphone maker to carmaker — a shift that combines the company’s software strengths with a capital- and supply-chain-intensive manufacturing challenge.

Beyond chassis and drivetrain, Xiaomi has signalled that software and user experience will be key differentiators. Lei Jun and company engineers have publicly discussed features such as ‘Xiao Ai’ voice interactions and security measures that would require owner voiceprints to activate car-exterior voice assistants, reflecting the firm’s emphasis on AI-driven services and privacy controls in a vehicle context.

The timing matters. China’s electric-vehicle market is crowded — legacy automakers, Tesla, and dozens of domestic startups are all vying for share — and product cadence now shapes brand credibility. Completing a new-generation model’s R&D suggests Xiaomi is trying to compress the cycle between launches, cement a reputation for rapid innovation and iteratively improve areas that have invited scrutiny, including after-sales service, reliability and second-hand value.

Xiaomi’s car programme has already provoked heated online debate in China: users and commentators have circulated stories about crashes, battery incidents, delivery fluctuations and resale-price anxieties alongside praise for engineering features such as novel battery layouts and hardware choices. For a consumer-tech company used to controlling a closed hardware-and-software experience, translating that approach to full-vehicle ownership — with its regulatory and safety demands — remains a major test.

If the new-generation SU7 ships on schedule and addresses quality and service concerns, Xiaomi could deepen the halo effect that helped it climb to a leading position among China’s new EV entrants. But success will depend on more than engineering: production scale, supply-chain resilience, regulatory compliance and convincing buyers that a mobile-phone maker can deliver long-term vehicle reliability are equally decisive.

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