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Xiaomi SU7’s Insurance Rate Sparks Speculation on Retail Price

January 30, 2024
in Technology
Xiaomi SU7’s Insurance Rate Sparks Speculation on Retail Price
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The insurance rate for Xiaomi Automobile’s inaugural model, the SU7, has been disclosed, providing a significant reference point for its final retail price. On January 30th, a prominent insurance company confirmed to Jiemian News that the premium for the high-end version of Xiaomi‘s vehicle is set at 361,400 yuan. The model utilizes Contemporary Amperex Technology Co. Limited’s (CATL) ternary lithium battery and boasts a top speed of 265 km/h. Consequently, market analysts are speculating that the final retail price of Xiaomi‘s vehicle could range from 250,000 to 370,000 yuan.

However, Wang Hua, General Manager of the Public Relations Department at Xiaomi Group, has refuted these speculations. In a statement on Weibo, Wang clarified that the recent licensing of internal vehicles is part of the testing process for sales and services, and the insurance purchase is merely one component of this process, thereby not indicative of the final pricing.

Lei Jun, Chairman and CEO of Xiaomi Group, has previously dismissed rumors of low pricing, asserting that Xiaomi‘s car is designed to rival traditional fuel vehicles in the luxury bracket, with prices reaching up to two to three million yuan. He emphasized that the pricing of Xiaomi‘s car would indeed be on the higher side.

Certain segments of the market are hopeful that Xiaomi Group will extend the cost-effectiveness of its mobile phone products to its automotive line. A potential buyer waiting for Xiaomi‘s car to hit the market told Jiemian News that they would consider a price cap of approximately 300,000 yuan acceptable.

With all the key details revealed, the pricing of Xiaomi‘s car has become a topic of significant interest in the market. However, Lei Jun responded to this interest by stating that the company is not rushing the pricing decision and will wait for testing to conclude. Previously, Lei Jun shared images of the licensed Xiaomi SU7 on Weibo, indicating that the licensing process is currently under testing.

Once all preparations are complete, Xiaomi‘s car is expected to make its official debut at the Beijing Auto Show in April this year. Company officials have previously stated that preparations for the Beijing Auto Show are underway, with all related projects, including technology research and development, production line ramp-up, and sales service system construction, progressing as planned.

Lei Jun expressed high expectations for the Xiaomi car project, which he described as the “final venture of my life,” staking all assets and reputation. He disclosed that the engineering team for Xiaomi‘s first model consists of 3,400 individuals, with R&D investments exceeding 10 billion yuan. Amidst intense competition in the automotive industry, Lei Jun declared the company’s goal to strive to become one of the top five car manufacturers globally.

SEE ALSO: Pinduoduo Launches “FuYao Plan” to Motivate Livestreamers for Spring Festival Sales

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