Why Xiaomi Achieved Success as an Automaker While Apple Did Not | Carscoops

      Here's how a Chinese tech company successfully brought an EV to market while Apple abandoned its own plans

      

      

      

      Xiaomi’s SU7 EV sedan has established the tech company as a notable player in the electric vehicle industry.

      The electronics giant has created a comprehensive ecosystem that incorporates its vehicles.

      Controlling the supply chain in China has been crucial to Xiaomi's swift success.

      

      Reflecting on the past few years, there was rampant speculation about Apple potentially launching its own vehicle. The tech behemoth was rumored to be forming partnerships with various automakers, including Hyundai, Kia, Porsche, BYD, and Toyota. However, early last year, it was reported that the ambitious initiative had been officially scrapped, resulting in approximately 600 employees being laid off or reassigned within the company.

      

      

      While we may never fully understand how close we came to an “iCar”, what is clear is that one of Apple’s competitors has been quietly working to bring its own EV to market. This rival is Xiaomi, which has sold 135,000 units of its SU7 in China since its launch in March 2024.

      Read: Apple Lays Off 614 Workers Following the Cancellation of Electric Car Project

      Xiaomi is primarily recognized in the West for its smartphones, but in its home country, the company has developed an interconnected ecosystem of consumer products that rivals even the offerings of Apple, Samsung, and Google. Ranging from smart lights to air purifiers, robot vacuum cleaners, and blenders, Xiaomi provides a diverse array of consumer tech products, all controlled through a single app. This makes the addition of a car to the company’s lineup a strategic fit.

      

      

      

      

      The Ecosystem Focus

      Today, tech companies focus on providing entire ecosystems rather than just standalone devices—the benefits of which are fully realized only when consumers commit to a brand's products. Whether it’s the convenience of an iPhone working with a MacBook or how effortlessly a Galaxy smartphone streams content to a Samsung TV, ecosystems are prevalent. Vehicles are also assessed based on whether they support CarPlay or Android Auto.

      Xiaomi, however, offers purchasers more than just an infotainment system. By introducing its own car, Xiaomi can attract customers to its network of connected devices like never before. The SU7 can utilize data from these other devices to adjust to a user’s habits, such as determining the optimal time for recharging the car’s batteries.

      

      

      

      

      

      

      

      

      “Xiaomi has really started infiltrating your home,” commented Gary Ng, an economist at Natixis Corporate & Investment Banking, in an interview with the New York Times. “Everything is linked together, and this is something other companies couldn’t do.”

      

      

      China’s Supply Chain Advantage

      Another aspect that expedited Xiaomi’s vehicle development is its operating environment. Chinese electric car manufacturers have benefitted from substantial government support, and the supply chain for EVs is largely contained within the country. Xiaomi secured battery sources from BYD and CATL, two of the largest battery producers globally. The company then acquired a manufacturing facility from Beijing Auto Group and commenced production of its new sedan.

      In every respect, Xiaomi was able to commence operations swiftly. Now, with intentions to launch a second vehicle in the form of an SUV and a new manufacturing plant already under construction, the company’s automotive ambitions are advancing rapidly.

      See Also: Xiaomi President Confirms Upcoming Global EV Expansion

      

      

      

      Despite this progress, success is not guaranteed. The company faces strong competition from a variety of domestic rivals, including electronics competitor Huawei, which has collaborated with several car manufacturers.

      However, Xiaomi is also competing against international brands. With the SU7 starting at just $30,000, it boasts aesthetics akin to Porsche and leading-edge technology. Coincidentally, since the Xiaomi SU7 debuted, Porsche’s sales in China have dropped by 30 percent.

      As more Chinese automakers seek success beyond their own borders, it may only be a matter of time before the SU7 is recognized globally as an attractive option.