XIAOMI(HK:01810) 21世纪经济报道·2025-06-26 23:23Core Viewpoint - Xiaomi's YU7 marks the company's significant entry into the automotive industry, facing intense competition, particularly from Tesla's Model Y, which has been a benchmark for many new entrants in the electric SUV market [1][3][4] Pricing and Market Position - The YU7 is priced at 253,500 CNY for the standard version, 279,900 CNY for the Pro version, and 329,900 CNY for the Max version, making it 13,500 CNY cheaper than the Model Y [1] - Over 15 electric SUVs are currently available in the 250,000 to 350,000 CNY price range in China, indicating a highly competitive market [1] - Xiaomi reported over 200,000 orders within 3 minutes of the launch and 289,000 orders within the first hour, showcasing strong initial demand [1] Competitive Landscape - The competition in the electric vehicle market is fierce, with multiple brands attempting to challenge the dominance of Tesla's Model Y, which has seen fluctuating sales in 2024 [3][4][6] - Despite the competition, Xiaomi's YU7 is positioned as a serious contender, especially after the success of its previous model, the SU7, which has outperformed Tesla's Model 3 in sales [9] Product Features and Strategy - The YU7 continues Xiaomi's strategy of offering high aesthetic appeal, performance, and value for money, with features like laser radar and 800V fast charging included as standard [1][7] - Xiaomi has emphasized safety in the YU7, equipping it with ultra-high-strength steel and a significant amount of data for its autonomous driving capabilities, aiming to meet industry standards [14][16] Financial and Operational Strengths - Xiaomi's automotive division reported a gross margin of 23.2%, surpassing competitors like Li Auto and Tesla, indicating a strong financial position despite ongoing losses in the electric vehicle sector [17][18] - The company benefits from a robust supply chain and management capabilities, with a commitment to shorter payment cycles for suppliers, enhancing operational efficiency [19] Challenges Ahead - Xiaomi must address quality concerns and production capacity issues that have plagued its previous models, as these factors are critical for gaining consumer trust and ensuring timely deliveries [20][21] - The company has acknowledged these challenges by allowing existing SU7 customers to switch to the YU7, indicating a proactive approach to customer satisfaction and market positioning [22]