![Citi analysts: Xiaomi SU7 could lose RM 45k per car,]()
The Xiaomi SU7 is the Beijing-based smartphone maker’s first foray into cars. For now, the Xiaomi SU7 is built by BAIC, but later models will be built at Xiaomi’s own plant in Beijing once it obtains the necessary regulatory approvals.
Losing money in the early stages of a new car model is normal. Like all manufactured goods, it will take a while for a car manufacturer to recoup the investments made in stamping machines, tooling, and dies to produce one model.
The concern with Xiaomi, however, is the scale of the loss and whether Xiaomi can even make money when at all. Only two electric vehicle manufacturers in China are profitable - BYD and Li Auto, and none of them rely completely on battery EVs (BEVs). All except one of Li Auto's models are E-REVs (extended range electric vehicles), which is a plug-in hybrid that uses its engine solely as a generator. BYD relies on plug-in hybrids pad up half of its sales in China.
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![Citi analysts: Xiaomi SU7 could lose RM 45k per car,]()
Analysts from Citi Research estimate that Xiaomi will lose around 68,000 Yuan (~RM 44.6k) on each SU7 sold. This is based on Xiaomi’s own projection of selling 60,000 units of the SU7 this year.
That estimated loss per car is around 30% of the Xiaomi SU7’s price, which ranges from 215,900 Yuan to 299,900 Yuan (~RM 141.7k to ~RM 196.9K).
"We maintain our cautious view that ultimately everyone could be a loser" within the 200,000 to 300,000 Yuan (RM 142k – 197k) segment, said Citi Research, as reported by Reuters.
Citi added that there are 240 electric models in this price range, and many have even cut their prices following the Xiaomi SU7’s launch.
![Citi analysts: Xiaomi SU7 could lose RM 45k per car,]()
For reference, the BYD Seal is priced from 179,800 Yuan to 249,800 Yuan (~RM 118K to ~RM 164k).
Xiaomi says it has collected 100,000 orders within one week of the SU7’s launch. There were reports claiming that 40% of the orders were later cancelled, but this is an unverified claim.
Also read: Team China is being formed, without BYD - CEOs of GWM, Nio, XPeng, and Li Auto attended Xiaomi SU7's launch
Over 15 years of experience in automotive, from product planning, to market research, to print and digital media. Garages a 6-cylinder manual RWD but buses to work.
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