Why Xiaomi successfully became an automaker when Apple

This is how a Chinese tech company can bring electric cars to the market, and Apple has to cancel its own plans

While we may never know how close the world is to “ICAR”, all we know is that one of Apple’s tech competitors has quietly brought their own electric cars to the market. The competitor is Xiaomi, another technology company that has managed to sell 135,000 SU7s in China since its debut in March 2024.

Read: Apple rents 614 workers after cancelling electric car project

Xiaomi is known in the West for its phones, but at home, the company has developed a connected consumer product ecosystem that even Apple, Samsung and Google can only dream of. From smart lights to air purifiers to robotic vacuum cleaners to mixers, the company offers a wide range of consumer technology products, all controlled by a single application. That’s why cars are an important addition to the company’s lineup.

Everything about ecosystems

Today, tech companies are not interested in selling you a single device – they invest more in providing the entire ecosystem, and they can only really reap the benefits once you commit to using the company’s products. Whether it’s the ease with which the iPhone can communicate with a MacBook or the seamless Galaxy smartphone can flow it to Samsung TVs, the ecosystem is all around us. Even cars can be judged based on whether they offer Carplay or Android Auto.

However, Xiaomi not only provides buyers with an infotainment system. By selling its own cars, Xiaomi can potentially attract customers to its connected network of devices, never before. The SU7 can use data collected from these other devices to prepare the user for daily work, such as determining the best time to charge a car battery.

“Xiaomi has indeed started to penetrate your home,” said Gary Ng, an economist at Natixis Corporate & Investment Banking. New York Times. “Everything is linked together, which is something other companies can’t do.”

China’s supply chain is successful

In every aspect, Xiaomi has managed to achieve a difficult attitude. Now, with plans to launch a second car in the form of an SUV and a new manufacturing plant is being built, its car plans are full of momentum.

See also: President Xiaomi confirms that the global electric vehicle expansion is coming soon

Of course, success is still far from a guarantee. The company faces fierce competition from a variety of local competitors, including electronics rival Huawei, which works with several automakers.

But Xiaomi is also fighting against foreign brands. Starting at just $30,000, the SU7 offers a Porsche-like look with class-leading technology. Coincidentally, Porsche’s sales in China have dropped by 30% since the launch of the Xiaomi SU7.

As more Chinese automakers seek success outside their home country, it may be a matter of time before more globally see the SU7 as a convincing option.