During a high-profile 15-hour livestreamed road test from Beijing to Shanghai, Xiaomi founder Lei Jun addressed a recurring question from his massive fanbase: will the tech giant ever release a 'people’s car' priced under 100,000 RMB? His answer was a definitive no, stating that Xiaomi has no plans to enter the sub-$14,000 electric vehicle segment for at least the next ten years. This declaration marks a significant departure from the strategy that originally built the Xiaomi empire—offering high-spec hardware at disruptive, low prices.
Lei Jun’s reasoning highlights the brutal reality of China’s current automotive landscape. He noted that the budget segment is already saturated with domestic manufacturers that are 'very capable,' implying that the razor-thin margins in the low-end market offer little room for a new entrant to innovate. Instead, Xiaomi is positioning itself as a direct competitor to high-end marques like Tesla and Porsche, focusing on the Xiaomi SU7’s technological integration and high-performance capabilities rather than price-based volume.
This strategic pivot is essential for Xiaomi’s long-term survival in the automotive sector. Developing a smart electric vehicle requires astronomical R&D investment, particularly in autonomous driving and ecosystem integration. Lei Jun emphasized that the threshold for 'smart' electric vehicles is difficult to lower; attempting to build a car under the 100,000 RMB mark would likely force compromises on the very technology—chips, sensors, and software—that Xiaomi considers its core competitive advantage.
The 1,265-kilometer endurance test itself was a masterclass in modern marketing, designed to alleviate 'range anxiety' while showcasing Xiaomi’s Pilot driving assistance system. By participating in the drive personally, Lei Jun is signaling that Xiaomi is no longer just a smartphone company playing at cars, but a serious automotive contender. The refusal to chase the bottom of the market suggests a company confident that its brand equity has finally transcended its budget-friendly origins.