How Xiaomi may increase its production to meet orders?
- The Chinese producer of electronic products Xiaomi presented its first car at the Beijing Motor Show, the SU7 (“Speed Ultra” 7), a battery electric D-segment sedan which openly competes with the Tesla Model 3, also from the D-segment, which sold 300,000 units in China last year and more than a million since its launch in the country in 2020.
- Xiaomi's first production forecasts indicated a volume of 100,000 units per year of the SU7 (assembled by the Chinese carmaker BAIC Motor in one of its factories located in Beijing with a capacity of 150,000 vehicles per year).
- With the level of orders having already reached 88,063 units at the end of April, Xiaomi increased its production forecasts to 120,000 units in 2024 and 150,000 units in 2025 in order to reduce delivery times reaching six to eight months depending on the version.
- To achieve these objectives, the carmaker will notably double daily production time from 8 hours to 16 hours, by doubling the teams. Inovev presents below the different scenarios for increasing production to meet firm orders (scenario 1), anticipate additional orders by the end of the year (scenario 2) and finally, more hypothetical, saturate capacities of the current factory (scenario 3).
- Xiaomi has also decided to build a second assembly plant in 2024-2025, still in Beijing, with a production capacity of 150,000 vehicles per year, like the current factory. This factory could produce the brand's future SUV. It is still unclear whether this is a factory built by Xiaomi alone or whether it is a factory built in cooperation with BAIC. Xiaomi will therefore have a production capacity of 300,000 vehicles per year from 2026.