HE WAS known as China’s reply to Steve Jobs for taking Xiaomi from scrappy startup to an electronics large recognized for its smartphones.
With the launch of a much-hyped and against-the-odds electrical automobile, Lei Jun, Xiaomi’s co-founder and CEO, is taking on Elon Musk with a technique that takes a web page from Tesla’s playbook.
Lei, 54, took the stage in Beijing on Thursday (Mar 28) to unveil Xiaomi’s SU7 automobile, a challenge three years within the making that has attracted loads of consideration however which, Lei has warned traders, will lose cash.
Throughout Thursday’s two-hour occasion – a livestream hundreds of thousands of Chinese language tuned in to observe – Lei made a jibe at Apple for dropping its automobile challenge and declared Xiaomi’s EV superior to Tesla’s Mannequin 3.
Followers dubbed the Xiaomi CEO “Thor” on social media, a play on his surname which suggests thunder in Chinese language. Some commented that his outfit – a gray blazer over a black t-shirt – appeared like one thing Musk would put on.
Already a family title in China, Lei’s advertising and marketing technique for his EV borrows immediately from Musk, mentioned Yale Zhang, managing director at Automotive Foresight.
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“One particular person equals a whole advertising and marketing staff,” Zhang mentioned. “With each phrase he says, the eye he attracts on-line is of a distinct magnitude.”
Born in central China, Lei graduated from Wuhan College with a level in pc science earlier than working his approach as much as change into chief govt of software program agency Kingsoft.
In 2010, he co-founded Xiaomi. By 2014, the tech startup had a valuation of US$46 billion.
The Beiijng-based firm has grown with the recognition of its smartphones and residential home equipment, beloved in Chinese language households for his or her affordability and glossy styling.
Final 12 months, Xiaomi launched costlier smartphones to compete with Apple’s iPhone, however Lei’s resolution to promote a sporty EV that attracts styling cues from Porsche will check the Chinese language firm’s means to shift to a brand new, premium market.
In 2021, Lei introduced Xiaomi would construct its personal EV, an enterprise he mentioned then can be “the final main entrepreneurship challenge” of his life.
“Within the three years of growing this automobile, my largest realisation is that making vehicles is extraordinarily troublesome,” Lei mentioned on Thursday. “Even a large like Apple gave up on it.”
Beijing backing
The SU7 – brief for Velocity Extremely 7 – enters a crowded China EV market with an attention-grabbing price ticket, below US$30,000 for the bottom mannequin, cheaper than Tesla’s Mannequin 3 in China.
Xiaomi constructed a Beijing manufacturing facility able to producing 200,000 vehicles yearly earlier than it had regulatory approval to begin manufacturing in China. State-owned automaker BAIC Group disclosed in November it might make the vehicles for Xiaomi – on the identical Xiaomi plant.
Xiaomi, which plans to promote the SU7 solely in China for now, didn’t instantly reply to a request for remark.
Lei mentioned with out the help of the Beijing authorities, it might have been “not possible” to finish the automobile in three years, based on a transcript posted by auto blogger Chang Yan, who was amongst a bunch of Chinese language reporters invited to interview Lei on Thursday.
Musk additionally received help from the Shanghai authorities when organising the Tesla manufacturing facility there. The development of Tesla’s Shanghai plant took lower than a 12 months after it broke floor in 2019.
Analysts stay cut up on whether or not Lei’s challenge will transcend creating buzz to become profitable in a hyper-competitive EV market. “The chance is that they focus an excessive amount of on the EV area and lose focus on the sectors and merchandise that acquired them there,” mentioned Tu Le, founding father of consultancy Sino Auto Insights.
Lei mentioned he had initially deliberate to promote the high-end model of the SU7 for round US$48,500 earlier than chopping that to about US$41,500 as different automakers slashed costs.
“Xiaomi has sufficient money reserves to deal with any fierce competitors within the subsequent 5 years. And whether it is doable, Xiaomi will search for methods to build up extra cash,” Lei mentioned.
Xiaomi mentioned it had acquired 50,000 orders within the first 27 minutes of the SU7 going on sale. The corporate had not posted an up to date quantity on Friday. REUTERS
With China EV launch, Xiaomi’s ‘Thor’ takes on Elon Musk www.businesstimes.com.sg 2024-03-29 23:52:03
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