Xiaomi Motors, a newcomer to the industry, is progressing seamlessly, drawing inspiration from new forces.

Looking back at the Chinese auto market in 2024, besides BYD, which led sales, Xiaomi Motors emerged as the most successful entrant, starting on a strong footing.

From April onwards, Xiaomi Motors delivered a cumulative total of 135,000 vehicles in just nine months, all electric models priced above 200,000 yuan. Such a performance is remarkable for a new automaker.

If BYD's success hinges on perseverance, what is the secret behind Xiaomi Motors' triumph?

This is a question worth pondering. Since its inception, many automakers have tried to replicate Xiaomi's sales success. From vehicles to personnel, competitors have engaged in rounds of imitation, hoping to uncover Xiaomi's secret recipe.

He Xiaopeng, being closest to Lei Jun, seems to have grasped the essence. In the second half of the year, XPeng Motors gained momentum, moving from the ICU to the spotlight. However, Zhang Yong, following Zhou Hongyi's advice, attempted several "imitations" that not only failed to save Nezha but also cost him his job.

So, is Xiaomi Motors' success accidental or inevitable?

Learning from Tesla

Upon its unveiling, Xiaomi Motors' first model was dubbed the "Xiaomi Porsche." Many netizens noticed that the design of Xiaomi SU7 bore a striking resemblance to Porsche Taycan. Lei Jun often referenced Porsche during technology launches, giving the impression that Xiaomi SU7 was targeting Porsche.

With decades of business experience, Lei Jun knows how to pick the right competitor. While Porsche Taycan is a classic, it's not an apt target. In the smartphone industry, Xiaomi always focused on Apple's most popular designs. In the electric vehicle industry, Lei Jun chose Tesla, the top-selling brand, as the benchmark.

Indeed, at the official launch event, Lei Jun shifted his focus and compared the Tesla Model 3 Renewed Edition with Xiaomi SU7. After pixel-level comparisons, Tesla Model 3 became a stepping stone on Xiaomi SU7's path to success.

From smartphones to cars, Lei's comparison method has never failed. In Lei Jun's rhetoric, Xiaomi SU7 almost completely outperformed Model 3. This method was quickly adopted by competitors, but those who weren't meticulous enough faced fierce counterattacks from Xiaomi's Weibo operators, proving that Lei's comparison method isn't for everyone.

Xiaomi not only compares parameters but also pursues Tesla's pricing strategy. The starting price of 215,900 yuan is directly aimed at Model 3.

In terms of after-sales service, from store operation mode to delivery and after-sales form, almost everything mirrors Tesla's most successful industry practices, with all offline direct sales and unified delivery centers modeled after Tesla.

Of course, Xiaomi SU7 is just the beginning. Lei Jun understands that a single model isn't enough to secure a firm foothold in the new energy vehicle market, especially for a sedan. Hence, soon after Xiaomi SU7's launch, online exposures of Xiaomi SUV test vehicles surfaced.

Unsurprisingly, this YU7 targets Model Y. After all, Tesla Model Y has been on the market for five years and remains the best-selling electric vehicle. In 2024, it sold 480,000 vehicles in the Chinese market, almost three times Xiaomi Motors' current sales.

Of course, YU7 won't be launched soon. Considering various factors, some time is needed. Therefore, Xiaomi launched its own Performance model, Xiaomi SU7 Ultra, to maintain the buzz around Xiaomi Motors and enter the high-end market.

This is based on Xiaomi's order data. In initial orders, Xiaomi SU7 MAX accounted for up to 43.16%, indicating that more consumers are willing to pay for performance. It also proves that the Porsche-targeting smokescreen was quite effective.

With changes in the new energy market, Xiaomi gradually realized that relying solely on Tesla for guidance might hit a bottleneck. The rapid growth of plug-in hybrid models required Xiaomi to adjust its target. Among plug-in hybrid models, the best-sellers are medium and large SUVs, represented by Li Auto's L series.

Therefore, after Xiaomi YU7's appearance was announced, another camouflaged vehicle with the code name D14 began appearing near the Xiaomi Motors park. Combined with the fact that Xiaomi Motors' official job postings include positions for internal combustion engine engineers, Xiaomi's extended-range model is almost ready to be unveiled.

As a latecomer in the automotive industry, Xiaomi does have its advantages. Many pitfalls competitors have fallen into don't need to be repeated. Especially as a follower, with a clear direction, efforts become easier. By following competitors, Xiaomi indeed chose a good time.

Marketing God

Another key driver behind Xiaomi Motors' popularity, besides the SU7 itself, is Lei Jun himself.

As an internet veteran with over three decades of experience, Lei Jun has once again become a hit in the car manufacturing industry. With his existing traffic, Lei Jun gave the domestic auto industry a practical lesson in marketing.

For example, during Xiaomi Motors' recent winter testing, Lei Jun tweeted about learning a new skill to instantly freeze water without mentioning the car. The accompanying picture was in front of a Xiaomi car, instantly becoming a trending topic.

There were too many similar incidents throughout 2024. Lei Jun used his personal influence to make the entire internet aware of Xiaomi's car manufacturing efforts, providing sufficient publicity for Xiaomi Motors and achieving breakout success upon its debut. Under Lei Jun's influence, from the first day of Xiaomi SU7 deliveries, the entire internet's traffic surged towards Xiaomi Motors.

When the first SU7 was delivered, Lei Jun personally opened the door for the owner. This simple gesture made the already much-anticipated delivery ceremony go viral again. The news that the billionaire chairman personally opened the car door for me instantly swept the internet.

The first batch of delivered Founder's Edition models became hard currency in the market. Many people wanted to experience the charm of Lei Jun's same model as soon as possible. It was so popular that even offline test drives required appointments and queuing for several days or even a week. A Xiaomi SU7 can quickly recoup its cost just by renting it out, and even after nearly a year of its release, its resale value remains close to 100%.

Then, at the Beijing Auto Show, Lei Jun and Zhou Hongyi became the top streamers of the show with their green and red outfits. The password for walking traffic was that the content of taking photos of cars at the auto show wasn't as popular as encountering Lei Jun.

In the era of traffic being king, Lei Jun has almost reshaped the way the entire automotive industry is promoted.

The head of an automaker is no longer just the brain behind the scenes but also needs to stand in the spotlight and interact with netizens. They need to put aside their status earned over the years and interact with ordinary netizens. Especially unscripted live broadcasts turn automaker leaders into internet celebrity PKs.

Because Lei Jun understands the gap with traditional automakers, playing to one's strengths and avoiding one's weaknesses is the most effective way. Traditional automotive marketing relies on terminal stores, offline sales, and dealer networks. Xiaomi Motors doesn't have sufficient capital to establish a marketing network comparable to traditional automakers in a short period. At this time, Lei Jun, with an internet background, chose to use his strengths for marketing.

Lei Jun, who has experienced the fierce competition in the smartphone industry, understands too well where the internet's hotspots are. From the beginning, Lei Jun didn't follow the path of traditional automotive industry leaders but embarked on a new identity as an automotive blogger, talking about car manufacturing and driving, using self-media to market himself and Xiaomi Motors.

In the live broadcast on New Year's Eve, Lei Jun chatted endlessly in the Xiaomi Motors factory for over four hours. This time, there were no more imitators because automaker leaders knew they couldn't win against Lei Jun on the path he had taken.

To some extent, Lei Jun has become the best spokesperson for Xiaomi Motors. Liu Qiangdong wasn't exaggerating when he said in his early years, "Never compare marketing with Xiaomi, especially in areas where Lei Jun excels. It's hard for anyone to beat him."

Success requires the right timing, favorable conditions, and good relationships. Xiaomi has almost all of these in car manufacturing.

Right Timing: Xiaomi chose to enter the car manufacturing wave at a time when domestic new energy development was fastest. Although Xiaomi said this was a choice forced by US sanctions, Lei Jun had already invested in several new car manufacturing forces before that and was already very optimistic about the industry.

Favorable Conditions: Xiaomi Motors chose to settle in Beijing. From many perspectives, Beijing isn't the most suitable place, but it's precisely this unsuitability that is an opportunity for Xiaomi Motors. Beijing, desperately needing a "new car" business card, has become the place where Xiaomi Motors thrives. Xiaomi Motors has been a key project in Beijing since its inception. Without a car manufacturing qualification, BAIC provided it. For factory construction, the local government fully supported it. Xiaomi almost received policy benefits comparable to Tesla.

Good Relationships: Xiaomi Group has been established for 14 years and has accumulated a huge fan base. Even with a low conversion rate, it can bring a considerable consumer group. Moreover, those digital enthusiasts who rushed to buy Xiaomi's first mobile phones have grown old enough to have sufficient financial ability to consume cars. Sometimes, sentiment is really important.

According to several Xiaomi car owners, buying a Xiaomi car brings emotional value beyond expectations, something that any other new energy vehicle on the market can't satisfy. There was even an owner who learned to drive just to buy a Xiaomi SU7. It can be said that Xiaomi SU7 is no longer just a simple new energy vehicle but also represents exposure, traffic, and attention.

As for whether Xiaomi Motors' popularity is accidental, we might as well make a bold prediction.

Among the many predictions about Xiaomi YU7, many automotive industries have given unfavorable guesses, believing that the timing of YU7's launch isn't appropriate, with many competitors. It's difficult for Xiaomi to become a black horse in the SUV market by targeting Tesla alone, especially considering the impact of slowing growth in pure electric vehicle sales.

Judging from the market response of Xiaomi SU7, Xiaomi Motors' potential users haven't been fully tapped, and the order of over 200,000 is far from enough. At the same time, the market for pure electric SUVs is inherently larger than that for sedans. It's inevitable that Xiaomi YU7 will surpass the sales of SU7.

Especially in the capital market, investors have made their choices with real money. In the year since Xiaomi Motors began sales, Xiaomi Group's share price has been rising, and its market value has doubled to over 100 billion US dollars, making it the third-largest listed company in the world by market value. Moreover, after Lei Jun announced a delivery target of 300,000 vehicles in 2025, it didn't cause fluctuations in the share price, indicating that the market recognizes this expectation.

Although this growth rate seems exaggerated, if we look at the entire Chinese new energy market, an increment of less than 170,000 vehicles is almost not a big problem for the domestic market, where annual sales of new energy vehicles have exceeded 12 million. Moreover, sales of new energy vehicles will maintain a high growth rate, which is enough to accommodate Xiaomi Motors.

This is also why Xiaomi Motors reiterated that it will continue to focus on the Chinese market in the next three years and won't expand into overseas markets.

In 2025, the top streamers in the automotive industry may still be Lei Jun and his Xiaomi Motors.

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