Xiaomi EV plans to increase its daily production time from 8 hours to 16 hours starting in June, with monthly production capacity expected to rise to nearly 20,000 units, according to local media.
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Xiaomi EV, the car-making unit of Chinese smartphone giant Xiaomi (HKG: 1810, OTCMKTS: XIACY), is reportedly set to start double-shift production next month as it struggles to meet delivery demand.
Xiaomi EV's factory in Beijing is scheduled to begin a double-shift production model in June, increasing daily production hours from 8 to 16 hours, local media outlet Cailian said today, citing multiple sources.
Xiaomi founder, chairman and CEO Lei Jun had said that the Xiaomi EV factory can produce 40 Xiaomi SU7s per hour, with a new car coming off the line every 76 seconds.
On this basis, its full monthly production capacity is expected to rise to a level of nearly 20,000 units after it starts double-shift production, the report noted.
Over the last month, Xiaomi EV has increased hiring of production line employees in preparation for double-shift production, according to the report.
Xiaomi EV was preparing for double-shift production during the Labor Day holiday earlier this month, the report said.
Xiaomi EV said on Weibo on May 13 that its engineers used the Labor Day holiday to conduct a round of equipment maintenance and renovation to prepare for the boost in delivery capacity.
"We will have some good news to report to you in the near future," Xiaomi EV's Weibo read.
Meanwhile, Xiaomi EV is asking upstream suppliers to boost parts supply, the report noted.
Xiaomi EV has increased orders from its suppliers by about 80 percent, and for one category of parts, orders have increased from about 10,000 sets per month previously to 18,000 sets recently, the report said, echoing what another local media outlet Wallstreetcn mentioned yesterday.
In addition, the area where the second phase of the Xiaomi EV factory is set to be located is in the demolition phase of existing buildings, with construction set to begin in 2024 and be completed in 2025, according to the report.
Xiaomi EV's factory is located in Yizhuang, Beijing, with a total planned annual capacity of 300,000 units. The plant will be built in two phases, with the first and second phases having an annual capacity of 150,000 units each.
Earlier today, Xiaomi EV said it completed the delivery of the 10,000th vehicle of the SU7 and is working to boost production capacity to ensure it meets its 100,000-unit delivery target this year.
Xiaomi officially launched the SU7 on March 28, offering three trims -- standard, Pro, and Max -- with starting prices of RMB 215,900 ($29,850), RMB 245,900, and RMB 299,900 respectively.
Xiaomi was offering a Founders Edition for the SU7, limited to 5,000 units, with deliveries starting on April 3. Deliveries of the SU7's customized vehicles begin on April 18.
Customers who currently order Xiaomi SU7 will have to wait at least 30 weeks for delivery, while the highest-priced Max variant has a delivery cycle of up to 37 weeks, according to data monitored by CnEVPost.
($1 = RMB 7.2333)
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