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Xiaomi car: ready to lose money in the next more than five years

2024-04-24 Update From: AutoBeta NAV: AutoBeta > News >

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AutoBeta(AutoBeta.net)03/03 Report--

Recently, according to 36 Krypton's media "Start PowerOn" report, Xiaomi's car interior has been prepared for losses in the next five years.

It is worth noting that since Xiaomi announced its car-building, the progress of Xiaomi's car-building has attracted attention from people inside and outside the industry. As Xiaomi's first model SU7 approaches, Xiaomi's popularity has remained high, frequently on Weibo hot search positions.

Relevant information shows that Xiaomi announced its entry into the car-building field on March 30,2021. At that time, Xiaomi founder Lei Jun said: "Xiaomi car is the last major entrepreneurial project in my life, willing to bet all the reputation of life, personally lead the team, fight for Xiaomi car." It is estimated that the investment amount will be 10 billion US dollars in the next 10 years. In September 2021, Xiaomi Automobile Co., Ltd. was officially established with a registered capital of 10 billion yuan. Lei Jun, Chairman and CEO of Xiaomi, served as the legal representative. In November of the same year, the Administrative Committee of Beijing Economic and Technological Development Zone signed a contract with Xiaomi Technology, officially announcing that Xiaomi Automobile was settled in Beijing Economic Development Zone.

In December last year, Xiaomi SU7, Xiaomi's first car model, was officially launched. The new car was positioned as a "C-class high-performance eco-technology sedan," with dual-motor version and single-motor version available on power. According to the plan, the new car will be launched in the first half of 2024. At present, the model has been fully tested nationwide.

For Xiaomi car building, Lei Jun full of confidence, Once in the internal meeting said, Xiaomi car sales in the first year will reach 100,000 vehicles, After three years to maintain the rhythm of pushing a new car every year, Total sales to reach one million. In order to be able to devote himself to Xiaomi car, Lei Jun recently announced on Weibo that Xiaomi Group has made personnel adjustment, the mobile phone conference will be fully responsible by Lu Weibing, and he will devote more energy to the final preparation before Xiaomi SU7 goes on the market.

In addition, when the first model Xiaomi SU7 appeared, Lei Jun also revealed that the new car has the performance indicators not inferior to Tesla Model S, 0-100km/h acceleration, 100km/h-0 braking distance, top speed three indicators are not behind. However, in terms of price, Lei Jun also said that the price of Xiaomi SU7 is indeed a bit expensive, but expensive is reasonable, in the experience will certainly exceed everyone's expectations. Anyone with this kind of performance and configuration must have more than 400,000! Rumors have been refuted by netizens shouting Xiaomi SU 799,000 yuan, 149,000 yuan, 199,000 yuan and other prices.

As we all know, building cars requires a steady stream of capital investment. Wei Lai CEO Li Bin once said: car building is a very expensive thing, to become a competitive, sustainable car enterprise, at least 40 billion yuan of capital reserves. Although in terms of funds, Lei Jun has said that cash reserves are sufficient, in addition to the accumulation of funds, there are more than 10000 R & D teams, the world's top three mobile phone businesses and the world's best intelligent ecology, which will provide strong support for Xiaomi to build cars.

However, with the passage of three years, Xiaomi Automobile has not yet achieved profitability. It remains to be seen whether Xiaomi SU7 will be a hit. On the contrary, most of the new forces of car-building on the domestic market are still in a state of loss. For example, Weilai Automobile lost 10.793 billion yuan in the first half of last year, and Xiaopeng Automobile lost 5.177 billion yuan in the first half of last year.

If you look at the loss time of these car companies, it is not difficult to understand why Xiaomi says it is ready for losses in the next five years. Lei Jun naturally also understands that he once said: to be fully prepared for 5 to 10 years of sprint, with great investment, incomparable awe and lasting patience to face the journey. At present, the automotive industry is concerned that the pricing of Xiaomi SU7 is crucial and is related to the fate of Xiaomi's subsequent development.

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