Xiaomi shares up 15% after Chinese smartphone maker launches first EV

Xiaomi shares up 15% after Chinese smartphone maker launches first EV

A Xiaomi SU7 electric sedan is on display at a regional headquarters of Xiaomi in Nanjing, east China’s Jiangsu Province.

Future publishing | Future publishing | Getty Images

BEIJING – Shares of the Chinese smartphone maker Xiaomi rose 15% when the Hong Kong market opened on Tuesday, the first day of trading since the launch of the company’s SU7 electric car before the Easter holiday.

In a sign of how competitive China’s electric car market is, Xiaomi announced late Thursday that the SU7 would be priced about $4,000 lower Teslais the Model 3 and claimed the new car had a longer range.

As of Tuesday morning, Xiaomi’s online shop showed waiting times of at least 5 months for a basic version of the SU7. The company said it received orders for more than 50,000 cars in the 27 minutes since sales began at 10 p.m. Beijing time on Thursday.

Chinese EV startups Xpeng And Nio announced on Monday car purchase subsidies of 20,000 yuan ($2,800) and 10,000 yuan, respectively. Nio said the promotional agreement is in line with the Chinese government’s policy efforts to promote consumption through trade-ins.

The price cuts come as the growth of new energy vehicles in the world’s largest auto market shows signs of slowing. According to the China Passenger Car Association, the market share of battery- and hybrid-powered passenger cars has exceeded more than a third of new cars sold in China.

Li car, most of whose cars are equipped with a fuel tank to extend range, said Monday that it delivered 28,984 cars in March. While the number is higher than February, it is below Li Auto’s recent wave of deliveries. The company lowered its first-quarter delivery estimate by more than 20,000 vehicles in late March.

Around the same time, Nio also lowered its first quarter forecast by a few thousand cars. The company said Monday that it delivered 11,866 cars in March.

Xpeng delivered even fewer cars last month, at 9,026 vehicles.

In contrast, Huawei’s new energy car brand Aito said it delivered 31,727 cars in March.

BYD remained the industry giant with 139,902 battery-powered cars sold in March and 161,729 hybrid vehicles sold in this period. BYD’s total passenger car sales rose nearly 14% year-on-year last month.

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2024-04-02 01:46:44