Xiaomi EV plans to see production of the SU7 reach around 2,000 units in March and complete capacity ramp-up by mid-2024, according to local media.
(Image credit: Xiaomi EV)
Xiaomi EV's first model, the SU7, will officially enter the SOP (Start of Production) stage in mid-to-late February to kick off mass production, local media outlet 36kr reported today, citing several industry sources.
Xiaomi EV plans to see production reach around 2,000 units in March and complete its capacity ramp-up by mid-2024, with production reaching more than 10,000 units in July, according to the report.
For a vehicle, the R&D department needs to complete nearly all the R&D and validation testing before SOP to ensure the functional reliability and safety of the vehicle.
At the same time, the carmaker needs to address supply chain issues so that standard-compliant parts are on the production floor within a specified time frame.
The launch of the SOP means that the vehicles coming off Xiaomi's factory can be put on the market and delivered to users, the 36kr report noted.
In the initial phase of the SOP, monthly production of more than 2,000 vehicles is normal, as is the case with the mature production lines of many established automakers, the report said, citing industry sources.
And after the SOP kicks in, the responsibility for the vehicles will officially shift from the R&D department to the production department, and quality and capacity will be the new challenges Xiaomi will face in manufacturing, the report said.
Notably, the Chinese New Year holiday is approaching, which brings new complications for the SOP of the Xiaomi SU7, according to the report.
The upcoming Chinese New Year holiday is from February 10 to February 18, and February 4 and February 18 will be work days, albeit Sundays.
Due to the Chinese New Year holiday, Xiaomi will face increased communication and adjustment costs in the event of unforeseen issues before the SOP, the 36kr report noted.
Xiaomi officially announced on March 30, 2021 that it was joining the car-making bandwagon, stating that it would invest RMB 10 billion yuan in the first phase of its automotive business and expected to invest $10 billion over the next 10 years.
Lei Jun, the smartphone giant's founder, chairman and CEO, gave the SU7 its debut at a tech launch event on December 28, saying the company hopes to become one of the top five carmakers in the world in 15-20 years.
Two days before the event, Lei said on Weibo on December 26 that Xiaomi's SU7 was in trial production and was months away from hitting the domestic market.
Xiaomi has not released pricing information for the SU7, or when it will officially be launched.
The top-trim version of the Xiaomi SU7 has a vehicle price of RMB 361,400 ($50,320) for insurance purchase, local media outlet Jiemian said in a report yesterday, citing an unnamed source from a major insurance company.
This means that the Xiaomi SU7's starting price will likely be between RMB 250,000 and RMB 370,000, Jiemian's report said, citing market speculation.
($1 = RMB 7.1815)
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