Xiaomi's third model will be in the RMB 150,000 class, and the company has set a high estimated production and sales target for the affordable model, according to local media.

(Image credit: Xiaomi EV)

Xiaomi's second model will be an all-electric SUV (sport utility vehicle), and the company is also planning another new model at a lower price point, after its first model, the SU7, was a hit, local media outlet 36kr said in a report today.

The smartphone giant's SUV, which will be launched in 2025, will help Xiaomi EV expand its presence in the mainstream market, the report said.

While the SU7 has received good feedback from the market, it is after all the first model and has a few regrets, which will be seen remedied in the subsequent SUV model, the report said, citing a source close to the Xiaomi EV team.

Xiaomi's third model is cost-sensitive and is initially positioned in the RMB 150,000 yuan ($20,700) class, the report said, citing a person familiar with the matter.

Xiaomi is expecting much more from this affordable model than its first two, and has set a fairly high estimated production and sales target, according to the report.

The RMB 150,000-class model is part of the product planning ahead of the launch of the first vehicle, the SU7, the report said, adding that it is not clear if Xiaomi EV will adjust its subsequent product planning due to the hot sales of the SU7.

The planning for the three models is closely linked to the fate of the Xiaomi EV over the next three years, the report noted.

In the first year, Xiaomi will gain brand traction with user insights and great design.

In the second year, Xiaomi will enter the mainstream market. After losing the advantage of the newcomer protection period, Xiaomi will see loads of competition and will have to solidify its reputation through a solid SUV product, the report said.

In the third year, Xiaomi will launch a low-priced model to rapidly expand its user base through design and technology used in the affordable model.

The ability to take each step steadily will determine whether the Xiaomi EV can stay at the ever-winning poker table, the report said.

Xiaomi officially launched the SU7 on March 28, offering three versions -- standard, Pro, and Max -- with starting prices of RMB 215,900, RMB 245,900, and RMB 299,900, respectively.

As of April 20, orders for the Xiaomi SU7 have been locked in for more than 70,000 units, Xiaomi founder Lei Jun said at an investor conference earlier today.

Xiaomi is targeting 100,000 deliveries of the SU7 in 2024, Lei said.

In the traditional automotive industry, the demand for SUVs and sedans is 1:1, Lei said, adding that in the battery electric vehicle (BEV) segment, sedans are definitely the mainstream demand.

Asked at today's investor conference whether Xiaomi would launch an SUV, Lei said he could not answer the question at the moment.

"SU7 is our first car and it's already done quite well. I believe that the future cars, for sure, will be a big step up," Lei said in response to a question about SUVs.

($1 = RMB 7.2469)

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