Xiaomi’s Long Wait Times Leads CEO to Recommend Rivals’ EVs
It isn't every day you hear a CEO, especially in the cutthroat Chinese electric vehicle market, openly suggest that potential customers might be better off buying a rival's product. Yet, that’s precisely what Xiaomi founder Lei Jun recently did, advising would-be buyers of his company’s hot new SU7 EV that "If you need to buy a car quickly, other China-produced new energy vehicles are pretty good." It’s a candid, almost startling admission that underscores the immense, perhaps overwhelming, demand for Xiaomi EV's debut model, coupled with the very real challenges of scaling production in a highly competitive landscape.
The SU7 sedan, unveiled to much fanfare and a surprisingly aggressive price point, has been an instant hit since its launch earlier this year. Pre-orders surged, and the vehicle quickly became a sensation, lauded for its sleek design, smart features, and competitive pricing. The problem, however, lies in the delivery. Customers are currently facing wait times stretching an astonishing six to seven months, a duration that can feel like an eternity in a market where new models and technological advancements emerge at breakneck speed. This backlog isn't just an inconvenience; it represents a significant hurdle for Xiaomi as it attempts to transition from a consumer electronics giant into a serious player in the automotive industry.
Lei Jun's frankness, while perhaps disarming, highlights the intense pressure on Xiaomi EV to ramp up production. The Chinese EV market is a brutal arena, characterized by fierce price wars, rapid innovation, and an increasingly discerning consumer base. Companies like BYD, Nio, Xpeng, and Li Auto have well-established production lines and supply chains, honed over years. For a newcomer like Xiaomi, despite its vast resources and brand recognition, building a robust automotive manufacturing ecosystem from scratch is an incredibly complex undertaking. It involves not just assembling cars, but also securing critical components, ensuring stringent quality control, and optimizing factory efficiency to meet burgeoning demand.
The CEO's statement can be interpreted in a few ways. On one hand, it’s a remarkably honest way to manage customer expectations, preventing potential frustration and negative sentiment that could erode the brand's initial goodwill. It also subtly reinforces the SU7's desirability – the car is so good, people are willing to wait, but if you absolutely can't, here are other good options. On the other hand, it’s a stark reminder that demand, however strong, means little if you can't deliver at scale. In a market where customer loyalty can be fleeting, a lengthy wait could push impatient buyers into the arms of rivals, costing Xiaomi not just a sale, but potentially a long-term customer relationship.
Xiaomi has committed an ambitious $10 billion over the next decade to its EV venture, signaling its long-term intent and the strategic importance of this diversification. The initial success of the SU7 validates their investment and vision. However, the current production bottleneck serves as a critical test. The company is undoubtedly working overtime to accelerate manufacturing, streamline supply chains, and potentially expand capacity. The challenge now is to transform overwhelming interest into sustainable market share, converting those initial orders into delivered vehicles and satisfied customers before the intense competitive pressures of the Chinese EV market shift gears once again. The next few months will be crucial in determining if Xiaomi can successfully navigate this bumpy road from tech titan to automotive contender.
