Xiaomi has officially unveiled its second-generation SU7 electric vehicle, marking a critical milestone in founder Lei Jun’s ambitious pivot from smartphones to the automotive sector. Amidst a bruising domestic price war, the new SU7 launched with a starting price of 219,990 RMB, a modest 4,000 RMB increase over its predecessor despite significant surges in component costs. This pricing strategy reflects Xiaomi's determination to maintain its 'value-for-money' reputation while absorbing the financial pressures of a saturated market.
The launch event was a masterclass in Chinese tech showmanship, drawing 'half of the automotive industry' to witness the unveiling. By securing high-profile endorsements from stars like Shu Qi and athlete Su Bingtian, Lei Jun is attempting to cement the SU7’s status as a lifestyle icon rather than a mere piece of hardware. The strategy appears to be paying off in terms of initial hype, with the company reporting over 15,000 'locked orders' within the first 34 minutes of the announcement.
However, the path forward is not without friction, as Xiaomi’s stock dipped over 6% following the launch, signaling investor anxiety over thin margins and delivery bottlenecks. Lei Jun has maintained a high-frequency presence on social media to manage these expectations, even taking the rare step of publicly apologizing for technical slip-ups and mathematical errors during his presentation. This 'humble CEO' persona has become a vital component of Xiaomi’s crisis management, turning potential PR blunders into moments of perceived authenticity and fan engagement.
Beyond the car itself, the buzz surrounding Lei Jun’s response to 'lobster robots' highlights Xiaomi’s broader strategic shift toward embodied artificial intelligence. By investing in robotics and advanced driver-assistance systems (ADAS) that Lei Jun claims have achieved in two years what took competitors a decade, Xiaomi is positioning the SU7 as a mobile hub within a larger AI ecosystem. The success of this transition will depend on whether the company can translate its massive digital following into a loyal automotive customer base that can withstand the rigors of long-term vehicle ownership.