Lei Jun's high-end strategy is advancing step by step.

In his thoughts on entrepreneurship, Lei Jun deeply regretted that after Samsung's mobile phones lost the Chinese market, he did not firmly seize the high-end mobile phone market but instead focused on the low-end market. This led to Xiaomi's mobile phones having to make double efforts when later attempting to enter the high-end market.

In the automotive entrepreneurship, Lei Jun no longer hesitated and firmly moved towards the mid-to-high-end market.

On the evening of February 27, the starting price of Xiaomi SU7 Ultra at 529,900 yuan ignited the market.

This is a high-performance electric coupe with a 0 - 100 km/h acceleration of 1.98 seconds and a horsepower of up to 1,548. On February 14 this year, the mass-produced version of Xiaomi SU7 Ultra has already achieved a lap time that surpasses Porsche at the Shanghai International Circuit.

This high-end performance car received over 6,900 pre-orders in just 10 minutes after its launch, and within 2 hours, it reached the annual target of 10,000 units previously planned. Xiaomi has officially entered the competition in the luxury car market.

But few people know that as early as 2022, the second year after the establishment of Xiaomi Auto, the SU7 Ultra model was planned. "Especially after the launch of SU7, many optimizations and developments have been made for Ultra to establish the brand of high-end performance cars."

That is to say, Xiaomi Auto has chosen a different strategy from Xiaomi mobile phones from the beginning, aiming for the high-end. Xiaomi's first coupe, the SU7, has obviously achieved success in various senses. It is the first time to build a car and sell it in the first year, and with just one model, it has achieved nearly 40,000 orders per month.

The timely launch of Ultra will obviously help Xiaomi Auto and even the Xiaomi Group to make further progress in the high-end strategy.

Lei Jun knows that this battle must not be lost. After previously giving the pre-sale price of Xiaomi SU7 Ultra, he decisively reduced the official price to 529,900 yuan, which immediately detonated the market, resulting in 10,000 orders in 2 hours.

Lei Jun, in the automotive industry, is steadily advancing on the road to high-end.

Xiaomi SU7 Ultra

From SU7 to SU7 Ultra, Xiaomi Auto Moves towards Luxury

Xiaomi Auto started with the Xiaomi SU7, with a starting price of 214,900 yuan.

In December 2023, the appearance of Xiaomi SU7 made its debut for the first time. The design comparable to that of million-dollar luxury cars made Xiaomi SU7 quickly become popular and a topic of focus. In March of the following year, Xiaomi SU7 went on sale, and its 0 - 100 km/h acceleration time of 2.78 seconds shocked everyone.

Lei Jun repeatedly emphasized that Xiaomi SU7 is a car that is carefully built from the underlying technology with an investment of 10 billion yuan.

The electric drive is the heart of a performance electric vehicle. Xiaomi has independently developed three generations of motors, setting a new industry record for motor speed with 27,000 rpm; in terms of manufacturing, Xiaomi has deployed a large die-casting system weighing 9,100 tons, achieving breakthroughs in both efficiency and quality.

The final listed price of Xiaomi SU7 starts at 214,900 yuan, and the top configuration is 299,900 yuan. Lei Jun has repeatedly emphasized that the price of SU7 is "a bit expensive", but in terms of the final pricing and configuration, Lei Jun has shown a certain degree of sincerity.

Such a carefully developed product has achieved unexpected results. In 2024, a total of 135,000 Xiaomi SU7s were delivered, and the number of locked orders reached an astonishing 248,000.

Before the launch of SU7, Lei Jun was worried about the huge inventory pressure brought by the planned production capacity of 76,000. But in the past year, Xiaomi has experienced at least two production capacity upgrades, and the capacity utilization rate has exceeded the planned 80%, yet this is still not enough to meet consumer demand. On the contrary, the main pressure Xiaomi is currently facing is the insufficient production capacity.

The product reputation and order quantity of SU7 have formed a positive cycle, and Xiaomi has quickly established consumer trust in the automotive industry.

Xiaomi SU7 Ultra

The SU7 Ultra that has now been released was actually planned at the same time as the SU7, but Xiaomi's product launch sequence is very different from other car companies.

In the early stage of the development of new energy vehicles, the common approach of car companies is to use expensive luxury cars to attract consumers' attention, and then gradually launch lower-priced models to gain sales. This is the case for Tesla, from Roadster to Model S / X, and then to the current sales champion Model Y and Model 3. It is also the case for NIO, from EP9 to ES8, and then to lower-priced models.

In the early stage of the transition from fuel vehicles to new energy vehicles, the industry has not yet formed a clear pattern. Using a "dazzling" luxury car to create a focusing effect and attract consumer attention is the fastest way for a new brand to establish a high-end image.

However, Xiaomi was born in the most fiercely competitive era, where the competition for high-end brand seats is intense, and even the industry has entered the final elimination stage.

As a newcomer in the automotive industry, Xiaomi needs to first establish a wide user reputation, expand the awareness of Xiaomi Auto, and gain the sales and profit space for survival. Only then will it have the opportunity to further enhance the brand image through luxury cars.

Although the first model SU7 received good orders, behind its "popularization" is still the consumer enthusiasm for cost performance brought by "technological equality". Consumers buy Xiaomi cars because they want to get a better experience at a lower price.

So Xiaomi SU7 Ultra was timely launched. This is a key role for Xiaomi to bid farewell to the "cost performance" attribute and make consumers realize that Xiaomi can do more than just produce cost-effective products.

And Xiaomi has adopted the most widely concerned and recognized way by the masses: building high-end performance cars and challenging globally renowned racetracks. Lei Jun is constantly setting lap records with SU7 Ultra.

Xiaomi SU7 Ultra

Ultimately, the prototype of SU7 Ultra achieved a time of 6 minutes, 46 seconds and 874 milliseconds at the Nürburgring in Germany, becoming the fastest four-door car on the track; the mass-produced car achieved a time of 2 minutes, 9 seconds and 944 milliseconds at the Shanghai International Circuit, surpassing the Porsche Taycan Turbo GT.

The lap time results on the racetrack prove that Xiaomi's car manufacturing is not simply a matter of increasing horsepower, but an investment in the overall strength of the vehicle. Lei Jun successfully made "technical strength" the biggest luxury label of SU7 Ultra.

With a starting price of 529,900 yuan, this high-end performance car from Xiaomi has once again become popular. Within two hours of its launch, the orders exceeded Xiaomi's previously set annual plan of 10,000 units.

The technology and tuning of this car, such as the 27,000 - rpm V8s motor, will gradually be applied to lower - priced models. The launch of SU7 Ultra will have a positive impact on SU7 and the upcoming YU7.

And all of this is not only the plan of Xiaomi Auto, but also the need of the entire Xiaomi Group's high - end strategy.

High - End Strategy, Automobiles and Mobile Phones Complement Each Other

From the 1,499 - yuan Xiaomi mobile phone to the 529,900 - yuan Xiaomi SU7 Ultra, the brand journey of the Xiaomi Group has gone through several key stages.

In the first ten years, Xiaomi opened the mobile phone market with "cost performance" and "high performance" products, solidifying Xiaomi's position in the broad consumer group. However, in the later period, this model could no longer adapt to market competition, and both revenue and profit would encounter bottlenecks. Xiaomi had to move towards the high - end path.

However, the pattern of the high - end mobile phone market has also been basically fixed. Although Xiaomi's high - end mobile phone Ultra series has achieved certain technological innovations and gained user love, it has not been able to completely rid the Xiaomi Group of the shadow of cost performance.

So Lei Jun started to build cars. And when the automotive business was born, it was already decided to take the high - end route.

An insider told 36Kr that the main products of Xiaomi Auto are positioned between 200,000 and 500,000 yuan. Lei Jun is targeting the luxury market where BBA is located, which is a high - end price range where both sales and profits can be achieved.

In the mobile phone business, Xiaomi has already experienced the difficulty of moving from a cost - effective brand to a high - end brand. Currently, the Chinese automotive industry is also facing the difficulty of moving from affordable to high - end.

Xiaomi Auto must start from the high - end, and it must be supported by technological innovation to effectively enhance the high - end image of the Xiaomi brand.

Through SU7 Ultra, Xiaomi's high - end road can be said to have achieved phased results. The 529,900 - yuan high - end performance car has achieved the result of over 10,000 pre - orders in just two hours.

But it is not easy to establish a new luxury label.

Behind Tesla's high - end electric vehicle brand, in addition to the performance of Roadster, there are also industry - leading electronic control technology and manufacturing level. Traditional fuel luxury brands are built on the latest technology patents of engine and gearbox that they have held for a long time.

In the "power equalization" of new energy vehicles, chasing speed is not the biggest challenge. Xiaomi must invest more to build a brand technology barrier.

In any case, Xiaomi's high - end strategy has taken a solid step.

On February 4 this year, the market value of Xiaomi in the Hong Kong stock market officially exceeded one trillion yuan. Since then, Xiaomi has continuously refreshed its stock price record, and the market value has continued to grow to 1.4 trillion Hong Kong dollars.

At the end of the Xiaomi SU7 Ultra launch event, the PPT played by Lei Jun read: "The past is in the past, and a new era has begun."

This seems to be a portrayal of Lei Jun's inner perception of Xiaomi's state.