Xiaomi has been in the automobile market for a couple of years (although it is still we are waiting for your arrival in Europe), and in contrast to what the brand offers in other areas such as smartphones, the company wants to position itself rather high in the price table of its cars.
Lei Jun, CEO of Xiaomi, confirmed during a live broadcast on April 17 that the brand has no intention of launching electric vehicles below 100,000 yuan (about 12,500 euros) in the coming years. Here, as expected from the figures, he talks about the Chinese market.
Communication. Lei Jun made these statements during a live autonomy test in which he drove a new generation SU7 Pro from Beijing to Shanghai (1,265 kilometers) with a single stop to charge. On the way, he took the opportunity to chat with the chat, a calculated communication strategy that has been noticed. Luckily, during the talk, we were able to find very interesting statements from the head of the brand himself and get an idea of his roadmap.
No to the cheap car. According to counted Jun during the broadcast, today’s competitive electric cars increasingly depend on intelligent driving systems, and that type of technology has a high cost that does not fit with a sales price below that barrier of 100,000 yuan in China.
According to collect the media CarNewsChina, Lei himself recognized that the new generation of the SU7 It accumulates more than 100 improvements compared to the previous model, with an increase in material costs of almost 20,000 yuan, but its selling price only rose by about 4,000 yuan. For Xiaomi, the equation applied to an entry-level car simply does not add up.
Where Xiaomi does want to be. The updated SU7 starts at 219,900 yuan (around 27,500 euros), and the brand’s direction points even higher, as the firm is ready to launch its SU7 Ultra which already competes in the high-performance segment, and in the not too distant future models such as the YU7 GT or a premium variant of the SU7 will also appear, according to they count from ChinaEVHome.
We will have to see prices when the firm lands in Europe with its SU7, but everything indicates that Xiaomi wants to consolidate itself within the field of the mid/high range of automobiles.
The Chinese car is not synonymous with cheap. Xiaomi is not the only one that avoids the price war in the entry segment. He Xiaopeng, president of XPeng, declared during the presentation of MONA M03 that his company also has no plans to go below that 100,000 yuan threshold. Among the reasons it gave were too tight margins, unsustainable investment in smart technology and real risk of a destructive price spiral.
What the numbers say. Sales data in China reinforce this reading. And it is that according to figures collected by CarNewsChina, entry-level electric cars, such as the Wuling Hongguang Mini EV or the BYD Seagull (Dolphin Surf here in Spain), registered year-on-year falls of almost 58% in the first months of 2026, partly due to the end of tax exemptions on purchases. The sedan and utility vehicle segment as a whole also fell almost 20% year-on-year in March. The volume is there, but the profitability is not.
Promises. All in all, Lei Jun left a door ajar in the long term. Their goal is for Xiaomi to be among the five largest car manufacturers in the world. Reaching that scale would, sooner or later, require greater price coverage. But for this scenario to come true, there still seems to be time.
Cover image | Xiaomi
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