There is finally news about the Xiaomi SU7 Ultra mass production version, which is "a little expensive".

On October 24, Xiaomi officially announced that it will hold a new product launch event on October 29, which will not only introduce the Xiaomi 15 series but also reveal the Xiaomi SU7 Ultra mass production version.

The prototype of the Xiaomi SU7 Ultra was the Xiaomi SU7 Ultra Prototype unveiled by Lei Jun at his annual speech on July 19.

Source: Xiaomi Automobile Official

According to Xiaomi officials, the Xiaomi SU7 Ultra Prototype was born to compete in the Nürburgring Nordschleife, with the challenge goal of "becoming the fastest four-door electric car at the Nürburgring within ten years".

To achieve this, Xiaomi has divided its "Challenge Plan" into two steps:

First, use the prototype car in October 2024 to challenge the Nürburgring Nordschleife non-production lap time ranking;

Second, use the mass production model in 2025 to officially challenge the Nürburgring Nordschleife production lap time ranking.

Xiaomi is so confident in the Xiaomi SU7 Ultra Prototype, so how does the derived Xiaomi SU7 Ultra mass production version stack up?

The Xiaomi SU7 Ultra mass production version is road-legal

Although it has not been officially released, we can still glean some information about the Xiaomi SU7 Ultra mass production version from the prototype.

What are the differences between the Xiaomi SU7 Ultra mass production version and the Xiaomi SU7 Ultra Prototype? According to the official response:

The Xiaomi SU7 Ultra mass production version and the Xiaomi SU7 Ultra Prototype have the same core technical capabilities, including the three-motor system, racing battery, thermal management system, etc.

The difference lies in the fact that the Prototype version was designed solely for racing performance, validating core technologies such as the three-electric system and chassis, and is not road-legal. In contrast, the Xiaomi SU7 Ultra mass production version is road-legal.

To analogize with the mobile phone industry, it's like having the same Qualcomm chip and battery, but the prototype has additional factors like custom cooling fans.

The Xiaomi SU7 Ultra Prototype used for testing at the Nürburgring had its interior stripped out, included a roll cage, and had tires wider than the maximum standard size for mass production, indicating that the Xiaomi SU7 Ultra is fully aligned with the Prototype in terms of core technologies like the three-electric system and chassis, with only minor differences in exterior styling and tires.

So, what was the result of the Xiaomi SU7 Ultra Prototype at the Nürburgring? Unfortunately, due to weather conditions, Xiaomi has not yet had the opportunity to officially set a lap time. Interestingly, BYD's U9 was also present but did not complete its run due to weather.

Source: Lei Jun's Weibo

Recently, many new energy vehicles have frequently challenged their limits on the racetrack, with ZEEKR, NIO, Xiaomi, and BYD all taking part. What motivates this trend?

Competing at the Nürburgring: Xiaomi's Strategy to Establish a Racing Identity

Racing electric vehicles is essentially segmenting the market, and Xiaomi wants to embed a racing DNA.

First, let's consider the significance of the Nürburgring Nordschleife. At 20.8 kilometers, it is the longest racetrack in the world, with a total of 177 corners and significant elevation changes. Setting a fast lap time here is certainly worth bragging about. Moreover, the process allows automakers to identify and improve vehicle deficiencies, providing a valuable learning and improvement opportunity.

Source: Xiaomi Automobile Official

However, saying that the Xiaomi SU7 Ultra Prototype raced to identify its own shortcomings is a bit simplistic. Based on Lei Jun's marketing style, the real purpose may be to strengthen Xiaomi's racing DNA.

In essence, it's about branding and segmenting the market. This strategy is similar to Lixiang's, except that Lixiang's tag is "dad's car," while Xiaomi's is "racing" and "performance."

A similarly positioned vehicle to the Xiaomi SU7 is the ZEEKR 001 FR, which has set various racetrack records but retails for a hefty 760,000 yuan. Clearly, ZEEKR doesn't expect the 001 FR to boost sales; its purpose is to reinforce the brand's racing image, part of ZEEKR's marketing strategy.

Indeed, the ZEEKR 001 has left a strong impression on users for its powerful performance and handling. Many owners consider it the best-handling electric car in its price range, which has helped ZEEKR establish a reputation in the market for high-performance electric vehicles.

From this perspective, it's understandable why Lei Jun described the Xiaomi SU7 Ultra as "a little expensive" since it's not intended for high volume sales. Since its launch, Xiaomi has consistently promoted the Xiaomi SU7's "powerful performance" through various marketing channels, including Lei Jun's drifting demonstrations, its sports car-like appearance, and its Nürburgring challenges. In essence, Xiaomi is branding the Xiaomi SU7.

This is not unusual in today's increasingly competitive new energy vehicle market, where successful sales often require precise market positioning.

Niche Markets: The New Frontier for Automakers

It's evident that automakers are shifting their positioning to target different niche markets, whether it's the Xiaomi SU7, dad's cars, or urban off-road vehicles.

Amid the waves of intelligence and electrification, which rely heavily on supply chains, niche markets offer automakers an opportunity to escape the "homogenization" trap and regain pricing power, ultimately benefiting their overall profitability.

Source: Lixiang Official Website

However, niche markets demand higher standards and clearer requirements from consumers. For instance, performance car buyers expect superior handling, while dad's car buyers prioritize comfort.

Instead of simply stacking features, automakers must truly understand customers' needs. Xiaomi's SU7 aims for a racing identity, which requires substance to back up its claims. Otherwise, it risks being seen as merely self-aggrandizing.

As a counterexample, automakers have been introducing "female-oriented" vehicles, but the reception has been mixed. In 2015, Dongfeng Nissan launched the new March, which, while visually appealing, was merely a color-coded version without truly understanding female consumers' needs.

Many automakers emphasize the importance of the female market but fail to cater effectively to women's demands. Women seek vehicles that reflect their independence and autonomy, not just a "queen's co-pilot" label.

Xiaomi's Nürburgring challenge follows a similar logic: first, understand your customers' hearts. Lei Jun mentioned in his annual speech that the Xiaomi SU7 is designed for people who refuse to settle for mediocrity, strive for their dreams, yearn for advanced technology, and possess an optimistic and confident spirit.

With years of experience in digital products and ecosystem development, Xiaomi has a natural advantage in understanding customer needs. Its product definition philosophy is to satisfy 80% of customers' needs 80% of the time, requiring precise identification of customer requirements to determine which features to retain and which to discard.

China's new energy vehicle industry has achieved rapid growth but faces increasing product homogenization. The key to breaking this stalemate is to shift focus to niche markets and precise positioning, as evidenced by BYD's Fangchengbao urban off-road vehicles, ZEEKR's MIX baby bus, and Xiaomi's racing cars.

In Conclusion:

Entering niche markets requires genuinely outstanding products; otherwise, it's just a gimmick. The true performance of the SU7 Ultra mass production version will depend on the October 29 launch event and subsequent real-world testing.

Of course, every coin has two sides. If Xiaomi's Nürburgring challenge succeeds in generating buzz, more domestic new energy vehicles may follow suit, turning the Nürburgring into another benchmark like DXOMark – a risk worth considering.

Source: Leitech