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Chinese smartphone maker Xiaomi (OTCPK:XIACF) will launch its first electric sedan on March 28 in China, its CEO Lei Jun announced, sending its Hong Kong-listed shares soaring 11.9% on Tuesday.
The company, which invested over CNY 10B ($1.39B) in the initial R&D phase for the electric vehicle, pre-launched the SU7 model late last year. At the time, Lei said Xiaomi (OTCPK:XIACF) aimed to become one of the top five global automakers over 15-20 years.
Orders for the EV can be made at 59 Xiaomi (OTCPK:XIACF) stores in 29 cities across China. The EV will feature Xiaomi’s self-developed e-motor, battery, hyper die-casting, and autonomous driving.
“Price-wise, this sporty vehicle is unlikely to disrupt the market in the budget segment, like Xiaomi’s (OTCPK:XIACF) smartphones,” SA analyst Florian Muller said last week. “… statements from Xiaomi make it clear that the EV will not be targeted at the low end of the market. I see this as a challenging endeavor.”
The SU7 launch comes at a time when automakers have faced muted EV demand in China and mounting competition. Even so, domestic EV sales rose 18% during January-February, data from the China Passenger Car Association showed, compared to last year’s 21% growth.