Xiaomi Auto states there is no "beggars' edition," denying plans to launch a Redmi car. How should this be interpreted? Do you have a positive outlook on the future of Xiaomi Auto?
On January 8th, Xiaomi Automotive addressed the top 100 questions from netizens in a Weibo post titled “Answers to 100 Questions from Netizens (Part 1).” When asked if Xiaomi would create an ultra-low-cost version to reduce the starting price, Xiaomi responded： “Please rest assured, Xiaomi Automotive has a well-established product development guideline with a priority on the ‘experience.’ It always comes first.” Meanwhile, Xiaomi denied any plans to launch Redmi cars, stating that there is no such plan, and the current focus is on ensuring the entire production and sales chain of Xiaomi cars, specifically the first model, Xiaomi SU7, is executed well. Concerning netizens' worries about whether Xiaomi will shift its focus to car manufacturing and have less energy for smartphones, Xiaomi clarified that smartphones remain their core business and the foundation of the “People, Cars, and Home Full Ecology” strategy. At the current stage, Xiaomi’s founder, chairman, and CEO, Lei Jun, allocates roughly 1/4 of his time to smartphone research and development, 1/4 to group operations and management, and 1/2 to the automotive business. Xiaomi Automotive emphasized that there is no ultra-low-cost version and denied the introduction of Redmi cars.
Xiaomi’s Future Car Models and Strategy
Today, Xiaomi Auto responded to the top 100 questions from netizens, stating that there won’t be a “beggar” version or a Redmi car. However, everyone should not be too disappointed, as there will be more models to come.
In response to question 24 about the “beggar” version, they mentioned a “fully consistent criterion,” indicating that this criterion will be used again. Regardless of the number of models, they aim to ensure that the basic version is not too basic.
Regarding question 28 on why it’s called “7,” they said, “7 is based on the domestic common perception of car model positioning,” implying that future models will undoubtedly include other numbers like 3, 5, 8, etc.
Currently, rumors suggest that Xiaomi’s future product lineup includes at least a pure electric SUV and a range-extended vehicle. For example, the electric SUV could be named SU7X, and the range-extended vehicle might be AU7. They don’t need to change the number, just the letter to create a full lineup.
Looking at question 29 about global ambitions, they mentioned focusing on the domestic market “now” but ultimately aiming for a “global” presence. This means that besides the 8 and 9 series potentially targeting China and developed countries, there might also be 3, 4, 5 series penetrating markets like Southeast Asia and the Middle East.
Tesla’s Model 3 and Y briefly led in technology, dominating single-product sales for a long time. Yet, this didn’t prevent their brand from being surrounded by competitors like BYD, who have a more extensive product line.
Xiaomi’s aspiration to go global implies their product line won’t be shorter than Tesla’s, which seems to have 7 models but actually only 2.
Therefore, there’s no need to worry. The official statement of no Redmi car doesn’t mean Xiaomi won’t introduce a model like SU3, positioned lower than SU7 in the future.
Hopefully, the entry-level cars will still have the sleek design of the “Bao Shi Mi.”
Regarding the Xiaomi Auto technology launch on December 28th, which technologies are the most noteworthy?
Xiaomi’s Strategy and Confidence in SU7, No Low-End Versions Planned
Lei Jun’s confidence in the sales of SU7 suggests there’s no need for a bare-bones version to prove its value for money.
Firstly, a bare-bones version would likely cut down on intelligent driving features. While this might seem like a clever cost-saving measure, it doesn’t align with Xiaomi’s ethos. Most consumers tend to purchase lower-spec models, and Xiaomi’s fans, known for their high standards, wouldn’t react well if too many features, including intelligent driving, were removed. Their immediate response would likely be negative, expressing disappointment that even a significant investment doesn’t include features like autonomous driving.
Secondly, although Lei Jun’s approach seems a bit stubborn—aiming to compete with luxury brands while maintaining a value-for-money proposition—he’s focused on being “the luxury within its price range” rather than competing on the lowest starting price.
For Xiaomi Auto, confidence is more important than anything else. For the SU7 and the second model, shipment volume is less critical than making it known that Xiaomi Auto has superior technology, high self-research and development rates, and independent manufacturing capabilities.
Therefore, a bare-bones version or a Redmi car won’t be introduced shortly.
However, Xiaomi will likely venture into the more affordable car market, with models priced around 100,000 to 150,000 yuan. Xiaomi Auto doesn’t rely on external financing and doesn’t need to impress investors with stories, so it can afford to target this huge market segment. This approach is reminiscent of Xiaomi’s initial stance in the smartphone market, claiming to focus only on top-tier flagship phones and not budget models, only to introduce the Redmi line two years later.
A Redmi car might emerge by 2026. For those with a tight budget, it might be worth the wait.
According to reason, Xiaomi should conduct market analysis, but I always feel that something is off.
I’m curious about how many Xiaomi fans would be willing to spend two hundred thousand on a car.
I’m not saying that Xiaomi fans don’t have two hundred thousand, I’m saying who would be willing to spend two hundred thousand on a car.
If you are, feel free to leave a comment.