Citi Bank Analyst: Xiaomi loses $10,000 for every SU7 it sells?!
LienApr 11, 2024, 05:04 PM
On March 28, Lei Jun, the founder and CEO of Xiaomi, held a Xiaomi automobile launch event in Beijing, announcing the pricing of the Xiaomi SU7 electric vehicle: ranging from 215,900 to 299,900 RMB. Voice of America pointed out that the appearance of Xiaomi SU7 is considered by the industry to resemble the luxury car Porsche, but due to the affordable price, the order volume reached 88,898 units within 24 hours.
Xiaomi SU7 is the first attempt of the smartphone manufacturer in the auto industry. Currently, the Xiaomi SU7 is produced by BAIC outsourced production. Once local regulatory approval is obtained, subsequent models will be manufactured in Xiaomi's factory in Beijing.
It is quite normal for losses to occur in the early stages of a new model. Like all commodities, auto manufacturers need some time to recoup their investment in stamping machines, jigs, and molds.
However, as Reuters pointed out, Xiaomi once stated that they expect their SU7 electric vehicle to operate at a loss. Some analysts even predict significant losses. Citibank analysts said in a report, "We maintain a cautious view that every manufacturer pricing cars between 200,000 and 300,000 RMB will end up losing money". If based on this year's projected sales of 60,000 units, it is estimated that Xiaomi's SU7 car could lose a net of 4.1 billion RMB, averaging a loss of 68,000 RMB (about $10,000) per vehicle. The estimated loss per vehicle is about 30% of the Xiaomi SU7's selling price (215,900 to 299,900 RMB).
There are 240 electric vehicle models in the Chinese market at this price range. The low price of the new Xiaomi car has attracted consumers, causing many Chinese electric vehicle manufacturers to follow suit, including Geely's Zeekr series, Changan Automobile, Avatr, and other brands. For reference, the price of BYD Seal ranges from 179,800 RMB to 249,800 RMB.
Xiaomi stated that 100,000 orders were received within the first week of the SU7 launch. It was reported that 40% of the orders were later canceled, but this statement has not been confirmed.
If any infringement occurs, please contact us for deletion

Xpeng X9 is expected to launch in Malaysia in 2025, hailed as the electric version of Toyota Alphard
Since the right-hand drive version of Xpeng X9 was launched in Hong Kong, it has been favored by many Toyota Alphard users. Now, Xpeng plans to introduce the X9 to Singapore next month, and it is highly likely that it will be launched in Malaysia in 2025.With its luxurious configuration, intelligent technology, and excellent endurance, the Xpeng X9 is expected to become the Alphard of Malaysia's electric MPVs.The exterior design of the Xpeng X9 continues Xpeng's unique style, with recognizable f

Proton's first pure electric car, eMAS 7, is launched, targeting BYD ATTO 3 everywhere
Although the Proton eMAS 7 was recently launched, I have to mention the ATTO 3, because the targeting of the Proton eMAS 7 is too obvious.First, you can tell from the price. The BYD Atto 3 costs at least RM149,800, and even if BYD lowers the price by RM20,000, Proton can still ensure the price advantage of the eMAS 7. That is to say, the pricing of Proton eMAS 7 is very smart.The eMAS 7 has launched two versions:Proton e.MAS 7 Prime priced at RM109,800Proton e.MAS 7 Premium priced at RM123,800Th

Latest news on the 2025 Proton Saga, with ADAS support provided by iMotion Technology
【PCauto】The Proton Saga, with a history of nearly 40 years, is one of the most popular compact cars in Malaysia, and its sales have exceeded 2 million units.With the arrival of 2025, rumors about the new generation of Saga (code: AMA01) are becoming more and more.The upgrade of the Proton Saga is not only a complete renewal of its exterior and interior, but also a comprehensive upgrade of its power system and safety technology. The style of the exterior and interior will have a more technologica

BYD Xia launched in China, using the fifth generation DM hybrid system, with prices starting from RM 153,389
[PCauto] BYD Xia has recently been launched, and BYD M6 is no longer sold in China. Xia will fill BYD's vacancy in the MPV market. BYD Xia offers four configurations. According to the CLTC pure electric endurance test, it can be roughly divided into 100km and 180km versions. The price ranges from 249,800 to 309,800 RMB. Converted into Malaysian currency this is approximately RM153.4k - 189.2k. As BYD's important model, Xia is also equipped with the fifth-generation DM plug-in hybrid system. T

Is a 94% decline in Nissan's profit margin terrifying? Here's something even more terrifying, Nissan will become stronger because of this.
For the automotive industry, a Toyota is already scary enough, in the future, we may face another “Toyota” of similar scale.Nissan is recently mired in difficulties. In the latest financial report released by Nissan, Nissan's profit margin has been seriously decling. The net profit fell by 94% year-on-year in the first half of the year, only 19.2 billion yen. The market value of Nissan at this time is 9.327 billion US dollars, only 3.4% of Toyota's.In addition, there is news that Nissan's cash r
Popular Cars
Car Compare