According to a leaked Xiaomi car factory research document, Xiaomi car is expected to achieve the first car on the market in March 2024 and deliver it in April, with a vehicle output of about 2,000 vehicles in the first quarter and an output value of 400 million yuan.
According to the content analysis of the leaked documents, the final expected market price of the Xiaomi SU7 pure electric SUV model will be around 200,000 yuan, that is, 1990,000 yuan. This is in the current Chinese car market, which is frequent, it can be said that Xiaomi Su7 has a strong competitiveness.
According to Xiaomi's internal disclosure, they are psychologically prepared to continue to lose money for at least the next 5 years. This fully shows that Xiaomi Auto has entered the fiercely competitive market of Chinese car companies, and it must adopt a decisive battle strategy of "burning all jade".
In particular, Lei Jun, the founder of Xiaomi, also laid some "dark lines" on the strategic layout of Xiaomi Automobile, which is directly related to whether many leading businesses in the Xiaomi ecological chain can successfully land in the capital market. Theoretically speaking, Xiaomi can not only make up for the loss of car sales through venture capital leverage, but also obtain a return on investment that exceeds the loss several times through the income obtained from the listing of the first business.
At present, in China's pure electric SUV market of about 200,000 yuan, there is actually a "double choice" situation between Xiaomi SU7 and Geely New Energy's sub-brand Zeekr.
On February 27, the 001 model of the mid-term facelift of ZEEKR was officially released and launched, with a price range of 2690,000-3290,000 yuan. Compared with the old model, the facelift 001 has increased the total cost by 50,000 yuan, but the price is still lowered, and the entry version is even 3 cheaper than the old model10,000 yuan.
During the live broadcast of the product release on ZEEKR Weibo, the most barrage comments were the discussions around Xiaomi SU7 and ZEEKR 001. The audience even shouted the slogan "Let Lei Jun learn" to express their support for ZEEKR's pricing strategy.
It can be said that in the pure electric SUV market of around 200,000 yuan, consumers' choices are actually polarized into two models, Xiaomi SU7 and ZEEKR 001.
It is worth mentioning that there are some grievances between Lei Jun, the founder of Xiaomi, and Geely Automobile Group. In 2021, when Lei Jun led Xiaomi Auto executives on an industry inspection, Geely showed a high degree of openness and enthusiasm and fully supported Xiaomi's research work. But afterwards, Lei Jun poached many core team members of Geely Automobile Research Institute.
Today, Geely has formed a comprehensive encirclement of different ** areas of Xiaomi SU7 through the company's three major brands: the price of 15-200,000 yuan is borne by the E8 of Geely's new energy brand Galaxy; 20-250,000 prices have the existence of ZEEKR 007; The price range of 25-300,000 yuan is the latest flagship model of ZEEKR 001.
For newcomers in the industry like Xiaomi, this has successfully created a "double choice" situation at a major price point, and achieved the strategic goal of attracting the attention of consumers. In the future, it is only necessary to launch the specific price expected by the public to complete the battle for product launch.
Of course, for Lei Jun, the profit point of Xiaomi Auto is not just as simple as making profits from vehicle sales.
Since announcing its official entry into the automobile manufacturing industry in 2021, Xiaomi has deeply penetrated into all aspects of the automotive industry chain through its investment layout.
In September, Xiaomi established Intelligent Manufacturing**, and Lei Jun served as the chairman of the investment decision-making committee, and has received two rounds of more than 9 billion yuan of raised funds, which have been invested in a large number of automobile-related fields.
In addition, Xiaomi has also made large-scale investment in the upstream and downstream of the new energy vehicle industry chain through a number of subsidiaries.
In the field of power batteries alone, Xiaomi has invested in 5 top battery manufacturers in the industry in a short period of time; In addition, it has also invested in leading enterprises in many fields such as electronic control systems and wire control systems.
It can be clearly seen that Xiaomi is actively building an exclusive business ecosystem belonging to Xiaomi Auto through upstream and downstream investment. With Xiaomi's gradual disclosure of its automotive strategic planning, many related listed companies such as Yatong Seiko and Lucky Technology have also disclosed their cooperation with Xiaomi. Entering 2023, a number of Xiaomi automobile industry chain companies have begun to be warmly sought after by the capital market.
To sum up, Lei Jun's layout of Xiaomi cars is not only about the profits of vehicle sales itself, but also about the return on venture capital obtained by using cars to drive the listing of enterprises in the entire ecological chain. This is the real profit point of Xiaomi.
In addition, Xiaomi has also laid out car-based software and services, such as autonomous driving subscriptions, which will also be a long-term profit point.
So, back to the pricing issue of the Xiaomi Su7.
First of all, from a competitive point of view, the existence of the HarmonyOS is destined that Xiaomi Su7 will not adopt a low-price** strategy. Xiaomi must start from a high positioning, otherwise the entire Xiaomi automotive software ecosystem will also be dragged down its brand image.
Secondly, from the perspective of profit model, software subscription services need to cultivate user habits for a long time, and will not become the main profit in the short term**, Xiaomi still needs to rely on vehicle sales to make profits.
Therefore, 19The ** of 90,000 yuan not only takes into account the brand image of the product, but also takes into account the need to strive for higher sales, which can be said to be a balance in all aspects.
If the Xiaomi Su7 can achieve high sales as expected, it will not only help Xiaomi make enough profits from car sales, but also lay a solid foundation for the later software services and the listing of the Mijia ecological chain.