News on April 2, 2024: Xiaomi Corporation’s latest electric vehicle, Xiaomi SU7 has been enthusiastically received in the market since its launch. As of the early morning of April 2, the number of pre-orders for this model has reached 40,000 units. However, with the surge in orders, Xiaomi Automotive is facing extended delivery times.
Extended Delivery Times
Since its release, the Xiaomi SU7 has quickly gained a positive reputation among consumers for its innovative design and performance. Xiaomi shared data on March 31, revealing estimated delivery times of 16-19 weeks for the standard version, 17-20 weeks for the Pro version, and 26-29 weeks for the Max version. However, just two days later, these delivery times were extended to 20-23 weeks, 19-22 weeks, and 28-31 weeks, respectively.
This change reflects the production and supply chain management challenges faced by Xiaomi Automotive. Initially, the company planned to produce around 5,000 vehicles in April. Currently, Xiaomi Automotive is in urgent negotiations with suppliers to increase production capacity. While efforts are being made to expedite delivery, insiders suggest that meeting the demand for all orders in the short term will be difficult.
Sales Performance and Consumer Response
The sales performance of Xiaomi Automotive has attracted industry attention. According to the “Chefans” newsletter, the average number of confirmed orders per store for Xiaomi Automotive ranges from 1,800 to 2,000, with a high lock-in rate of 35-40%, but also a cancellation rate of about 40%. Extended delivery times may contribute to some consumers deciding to cancel their orders due to unwillingness to wait.
Behind the strong sales of the Xiaomi SU7 lies consumers’ growing anticipation for electric vehicles. With a global consensus on emission reduction, the new energy vehicle market is experiencing unprecedented development opportunities. Xiaomi Automotive, as a newcomer brand, has managed to stand out amidst fierce competition, indicating initial success in terms of product strength and brand influence.
However, with the increasing order volume, Xiaomi Automotive faces mounting pressure in production and supply chain management. Addressing how to increase production capacity, optimize the supply chain, and shorten delivery times in a short period of time will be crucial. Additionally, reducing the cancellation rate and enhancing the consumer car-buying experience are important considerations.
Overall, the high order volume and extended delivery times of the Xiaomi SU7 both affirm the brand strength of Xiaomi Automotive and test its production and supply chain management capabilities. Sustaining an advantage in future market competition will depend not only on technological innovation but also on effectively responding to market challenges and meeting consumer demands.