Xiaomi’s EV Success: A Contrast to Apple’s Struggles
Last year, Apple terminated its decade-long effort to produce an electric car, a project that reportedly consumed $10 billion. In stark contrast, Xiaomi, a Chinese electronics manufacturer, launched its first electric vehicle in the same year, just three years after initiating development. Xiaomi delivered 135,000 vehicles and plans to double that number in 2025.
Xiaomi’s rapid success where Apple faltered highlights the dominance of the electric vehicle supply chain in China. Chinese companies have secured a significant advantage in EV manufacturing, and Xiaomi leveraged this infrastructure to swiftly and affordably acquire components. This strategic advantage enabled Xiaomi to bring its EV to market quickly.
The Rise of Chinese EV Companies
Several Chinese electric vehicle companies, including Leapmotor, Li Auto, and Seres Group, are beginning to turn a profit after years of intense competition in the world’s largest auto market. This shift is indicative of the maturity and growing profitability of the Chinese EV sector, a direct result of the nation’s comprehensive EV ecosystem.
Beyond Xiaomi: China’s Tech Giants and EVs
Xiaomi isn’t alone in the foray into electric vehicles. Huawei, a telecommunications giant previously targeted by the U.S. government, is developing autonomous driving software. Huawei has partnered with various Chinese automakers, including Seres Group and state-owned firms such as SAIC Motor, BAIC, and Chery.
Comparing Xiaomi and Apple
Xiaomi has often been compared to Apple, mirroring Apple’s successful strategies. Notably, Xiaomi has replicated Apple’s initial focus on selling high-design, low-cost phones online, a similar approach that contributed significantly to Apple’s early success. Lei Jun, Xiaomi’s chief executive, even adopted a similar appearance to Steve Jobs for Xiaomi’s first phone launch in 2011.
Xiaomi’s successful entry into the EV market demonstrates the substantial influence of China in the global automotive sector.
