Xiaomi's first battle against the "encirclement" of its car was a success, but the price war still cannot beat the overwhelming traffic.

The popularity of Xiaomi cars remains high, with the Xiaomi SU7 frequently making headlines on the road and the offline stores bustling with activity. The test cars are also in high demand, leading to premature aging of some parts. It's hard to imagine how there can still be such a thriving scene in the long history of car manufacturing.

However, the large number of store visits and orders has also provided opportunities for detractors to find ways to discredit Xiaomi. They firmly believe that the hot sales of the Xiaomi SU7 are largely inflated by deliberate marketing efforts. Nevertheless, Xiaomi's first report card has provided a strong response to the outside world.

小米SU7在其首个完整销售周就取得了令人瞩目的成绩，销量达到2500辆，荣登易车榜单第一的位置。这个成绩对于小米汽车来说无疑是一个令人振奋的开始。在竞争激烈的汽车市场上，能够脱颖而出并超越其他竞争对手，显示了小米汽车的竞争力和吸引力。

尤其是与其他新势力车企相比，小米SU7的表现更加突出。它成功地超越了极氪001、极氪007以及小鹏P7等同类车型，这表明小米汽车在市场上的竞争地位逐渐稳固。同时，智界S7和阿维塔12等传统车型也被小米SU7所压制，这进一步证明了小米汽车的市场表现和吸引力。

对于那些曾经对小米汽车持怀疑态度的人来说，这个成绩更是一个巨大的反击。小米汽车的成功表明了其产品的优秀性和市场潜力，为其未来的发展奠定了坚实的基础。

In the list of the top 10 weekly sales of new forces in the Chinese passenger car market, Xiaomi's car ranked sixth with 2500 units sold, surpassing brands such as Tengshi, Deep Blue, and Xiaopeng.

Lei Jun announced that the sales volume of Xiaomi's SU7 has exceeded 40,000 units, and its momentum continues to rise. It's great to see the hot sales of domestic new energy vehicles, but how long can Xiaomi sustain this kind of success?

01 Competitors lowering prices to "encircle and suppress," but unable to match Xiaomi's overwhelming sales volume

Even before the official launch of the Xiaomi SU7, the entire automotive industry was already in fierce competition, with BYD leading the charge in lowering prices, as if giving a "warm welcome" to Xiaomi's entry into the automotive market. At that time, many people believed that with such a trend of price reductions and increased production, Xiaomi, without experience in car manufacturing and lacking economies of scale, would not succeed with the SU7 before it even hit the market.

On the eve of the launch of the Xiaomi SU7, Lei Jun and Lu Weibing took turns to do their homework for netizens, suggesting that the new car might be a bit expensive, but it would definitely be worth it. To onlookers, Xiaomi's car still seems to be conveying a sentiment of "I might be expensive, so bear with it."

In reality, the release of Xiaomi's car has garnered attention across the entire internet, attracting a large number of users from both the automotive and non-automotive circles. Even overseas netizens have some knowledge of the SU7, causing quite a stir. When compared with competitors, the Xiaomi SU7, starting at 215,900 yuan, features a 400V architecture and a 220kW motor. However, additional features such as buttons, refrigerators, and sound systems all come at an extra cost, making it not as "ideal" as it may seem on paper.

From a horizontal perspective, the configuration of the SU7 does not significantly outperform its direct competitors. The exterior design and intelligent cockpit may play a certain driving role. In fact, Xiaomi is benchmarking Tesla, but its hardware level and interior materials are not necessarily stronger than other electric vehicle models in the same price range, yet its sales volume sets an industry benchmark.

In Xiaotong's view, Xiaomi's car and Tesla share the same characteristic of having high online popularity. The former has accumulated a large number of fans both inside and outside the 3C consumer electronics field, while the latter is one of the earliest successful electric car brands, with influence comparable to Apple. Its technological strength also has a leading advantage in the industry and is well known by most people.

Nezha Zhang Yong also responded in an interview that if a product cannot attract attention across the entire internet, even with good product quality, it cannot be successful. If he has time, he will also bow and open the door for the prospective car owners at the new car delivery ceremony, the kind of bow that is at a 90-degree angle. In the era of new energy, the new forces in car manufacturing have overturned the traditional marketing model of automobiles, beginning to rely on traffic to convert sales, which has indeed caused many car companies that are focused on car manufacturing to suffer from "traffic anxiety."

Car companies eager to gain attention will also "act in desperation," and there are examples of affecting the goodwill of passersby due to awkwardly piggybacking on others, such as the several rounds of battle between Zhiji Auto and Xiaomi Auto.

Brand awareness is crucial; even with strong product features and competitive pricing, a brand may still be overlooked by consumers if it lacks exposure. Undoubtedly, before presenting an exceptional product, it's essential to ensure that potential buyers are aware of its existence and its reputation for offering high value. The leading weekly sales of the Xiaomi SU7 indicate a failure of competitors' tactics to lower prices collectively, prompting car manufacturers to focus on branding and marketing efforts.

However, Xiaomi's initial success doesn't guarantee continued dominance. As mentioned earlier, the standard and Pro versions of the Xiaomi SU7 don't significantly outperform direct competitors, with some parameters slightly lacking. Only the Max version competes at the same level as top-tier competitors. While Xiaomi has successfully converted traffic into actual sales, it doesn't mean that consumers disregard the importance of a car's features and specifications.

Lei Jun once stated at a press conference that before April 30th, the deluxe sound system worth 6000 yuan, the electric tail wing worth 6000 yuan, the refrigerator worth 2000 yuan, the genuine leather seats worth 8000 yuan, the optional wheel hubs worth 6000 yuan, and the Xiaomi Smart Drive Max worth 26000 yuan will all be given for free with the purchase of the Xiaomi SU7.

If the official does not extend the offer, car owners who place orders after May will no longer enjoy these benefits. This means that apart from the Max version, the competitiveness of the SU7 will be reduced. At that time, when facing other new energy vehicles with "standard across the range" features and even cheaper prices, Xiaomi's brand influence may not be as significant.

In the initial stage of Xiaomi's car listing, there was a large accumulation of orders, and the factory's production capacity was still ramping up. Although the delivery time has been shortened, it still takes at least 16 weeks for delivery, and the higher the configuration, the longer the delivery period. Users who reconfigure their orders recently also need to join the queue again.

This inevitably leads to some potential customers becoming part of the "wait-and-see" group. Those who are eager to buy a car may turn to other brands, which is not good news for Xiaomi's car sales in the future. Top-tier brands also need to deliver cars promptly when consumers need them, and smart driving software should be delivered as soon as possible. Otherwise, it's not cost-effective to have orders converted back due to slow delivery, which can affect reputation.

Although Xiaomi made a dream start with the mature SU7, as a newcomer in the automotive industry, Xiaomi's control over supply still cannot be relaxed.

03 Maintaining sales momentum, Xiaomi has another "ace up its sleeve"

Xiaomi acknowledges that the SU7 is a very good pure electric coupe. As an internet company, Xiaomi has utilized its experience accumulated in the fields of 3C and IoT to incorporate connectivity into the car.

However, from a product definition perspective, the SU7 is still a distinctly individual product. Its characteristics as a coupe and a pure electric vehicle mean that it is not suitable for everyone. Its role is more about building brand awareness and showing off to the outside world. It can be foreseen that the explosive momentum of the SU7 will not be sustained for too long.

Tesla's Model 3 and Model Y are the two main products, with the latter, as an SUV, far outselling the former. In other words, spaciousness, household use, and comfort are more in line with the direction of the domestic market. To maintain the sales volume of Xiaomi and Changhong, there are actually other "experts."

It is understood that Xiaomi's second car model is a mid-to-large-sized SUV (code-named MX11), using extended-range plug-in hybrid power, with a design similar to the Porsche Cayenne, but priced lower than the Ideal L9. It focuses on comfort for household use and does not have range anxiety, targeting a broader household user base, which is the cornerstone of Xiaomi's car sales. It is speculated that there may be a compact new energy SUV model tailored for young families in the future, so there is something to look forward to.

It seems that Lei Jun has put more effort into the second car model. There are reports that the development has been completed and it is expected to debut by the end of 2024. With the characteristics of the Xiaomi intelligent cockpit, it is believed that the second car model will be more competent. It is unknown whether Xiaomi will reveal more information about the second car at this year's Beijing Auto Show.

Of course, the current limitation for Xiaomi's cars is still the factory production capacity. The second car will not be rushed to market until the delivery issues of the SU7 are completely resolved. At least in the coming months, the hottest product for Xiaomi's cars will still be the SU7.