How China’s Xiaomi Beat Apple and Is Taking on Tesla

Company Overview & Strategy - Xiaomi cultivates a strong following among younger consumers in China, positioning itself as an alternative to Apple, Tesla, and Google [1] - The company aims to seamlessly integrate its products into various aspects of users' lives, with the EV project designed to complete its ecosystem [5][6] - Xiaomi entered the EV market partly due to concerns about US sanctions impacting its smartphone business [7] EV Market Entry & Development - Xiaomi's first EV, the SU7, is priced starting at just over $30,000, while the YU7 is around $35,000, making them competitive with Tesla's Model 3 and Model Y in China [14][15] - The company invested over $1.6 billion into more than 100 companies in the EV supply chain and constructed its own factory in Beijing [10] - Xiaomi achieved rapid scaling, producing its first 100,000 EV units in 230 days [14] Market Competition & Future Outlook - The Chinese EV market is highly competitive, with approximately 140 EV manufacturers [2][17] - In 2024, approximately 64% of all passenger EV sales were in China [16] - Xiaomi aims to become one of the world's top five car makers within the next 15 to 20 years, requiring expansion beyond China [17] - The company faces geopolitical uncertainties and trade barriers, including a 100% tariff on Chinese EVs in the US [18]