by Xiaomi’s Rapid Growth
Xiaomi has quickly become one of the most popular automotive brands in China, largely due to already being a mass-market and extremely popular consumer electronics brand. Their SU7 sedan and YU7 SUV have already proven their competitiveness, despite some initial issues. Xiaomi’s management has openly spoken about the importance of learning directly from competitors like Tesla.
Studying Competitors
During a recent appearance in China, Xiaomi CEO Lei Jun revealed that earlier this year the company purchased three Tesla Model Ys, disassembled them, and studied every component. It can be assumed that Xiaomi conducted similar work with the Model 3 during the development of its first SU7 car.
Traditional Industry Approach
This approach is not unique to Xiaomi. Throughout the automotive and other industries, tearing down competitors’ products is a long-standing analysis method. Electronics manufacturers regularly disassemble smartphones and processors, while automakers buy competitors’ cars, disassemble them down to the last screw, and study everything from materials and software to manufacturing technologies.
Even Ferrari came under similar speculation after a Xiaomi SU7 was recently spotted near the brand’s headquarters in Maranello, sparking assumptions about a possible comparison with the company’s first dedicated electric model.
The Learning Process
Lei Jun stated: “We bought 3 Model Ys earlier this year, took apart the parts one by one, and studied each component in turn.”
During the presentation at the Beijing National Convention Center, Jun expressed approval of the Tesla Model Y and showed comparisons between Tesla and the new YU7. Unlike many other industry CEOs, the Xiaomi head does not claim that their latest model significantly outperforms Elon Musk’s bestseller.
During the event, Lei told the audience: “If you don’t choose the YU7, you can consider the Model Y. I’m not criticizing the Model Y. The Model Y is a very, very outstanding car.”
High Demand and Limited Supply
Just last month, Lei took to social media to urge those looking for a new electric vehicle to consider options beyond Xiaomi and the YU7, as the tech giant faces a huge number of orders. Indeed, within 18 hours of the YU7 launch, Xiaomi received about 240,000 orders, and some buyers were informed that they would have to wait over a year to receive their order.
Faced with these delays, Lei urged buyers to consider alternatives instead of waiting in line. Among his suggestions were the Xpeng G7, Li Auto i8, and, again, the Tesla Model Y.
The openness of Xiaomi’s management about studying competitors and recommending other brands indicates a mature approach to the market. This demonstrates that the company understands the importance of meeting customer needs even at the expense of its own short-term interests, which could strengthen consumer trust in the long term. This strategy also highlights how quickly China’s electric vehicle market is evolving and becoming more diverse, offering consumers a wide choice of technologically advanced vehicles.
