Xiaomi has won the bet again.

In 2016, the Model 3 was launched. It received 115,000 orders in just 24 hours, and the official Chinese reservation website crashed. The old story is still fresh in our memory, but a new Guinness record has already been set.

The Xiaomi YU7 locked in 240,000 orders in just 18 hours. Amid the astonishment of both the industry and the public, the value of the so - called "King of Cars in Beijing" is still rising.

Since its deliberately low - key public debut at the beginning of the year, the Xiaomi YU7 has been surrounded by various controversies. Among them, the striking similarity between the YU7 and the Ferrari Purosangue is the most typical example. And during the response of Xiaomi's designer Li Tianyuan regarding the originality, his three "No's" achieved an artistic sublimation.

Li Tianyuan's series of "No's" were later confirmed to be a pre - arranged show effect discussed with some big influencers on the internet. However, the "emotional value" related to the car's appearance might explain how Xiaomi managed to achieve in one hour what Tesla took half a year to achieve in the Chinese market.

Xiaomi YU7 (top) and Ferrari Purosangue (bottom)

Analyzing Xiaomi's success story seems to be an art that will never go out of style.

Useless but Good - looking

After the release of the Xiaomi YU7, a popular meme started to circulate on social media:

The front of the Purosangue is long because it has a 6.5L V12 engine. The front of the Xiaomi YU7 is long because the Purosangue has a 6.5L V12 engine.

The Xiaomi YU7 may have referenced some design elements of the Ferrari Purosangue, but the "long front" is indeed a consistent design concept of Xiaomi cars. In the automotive industry, a long front is an unspoken characteristic of luxury cars.

Most luxury cars are equipped with large - displacement multi - cylinder engines. The longitudinal rear - wheel drive layout will make the engine take up more space in the front of the car, resulting in a longer front end. This is also the reason why the Purosangue has a long front.

Meanwhile, a long front will make the car body look more slender, move the cockpit closer to the visual center, and make the visual proportion more coordinated and beautiful.

In automotive design and engineering, the L113 index is generally used to measure the length of the front end, which is defined as the distance from the center of the front wheel to the brake pedal (dash - to - axle). From a daily perspective, the longer the distance between the front door frame and the center of the front wheel, the longer the front end of the car.

BMW 4 (top) and Toyota Corolla (bottom), Image source: Dongchedi

Therefore, most luxury - positioned cars will deliberately lengthen the L113. For example, the Volvo S90 doesn't have a longitudinal engine, but it still has a very long front end.

Volvo S90, Image source: Dongchedi

Electric cars not only don't have a longitudinal engine but also don't have an engine at all. Most electric cars use a short front end to gain more cabin space. However, the problem is that replacing the fuel tank with a battery doesn't change the mainstream aesthetic. Therefore, some models still follow the long - front design of fuel - powered cars, simply for the sake of good looks.

The veteran luxury car brand Mercedes - Benz continued the long - front design of fuel - powered cars on the EQS. However, perhaps due to considerations of the drag coefficient, Mercedes - Benz adopted a design that moved the A - pillar forward and reduced its inclination angle. As a result, it not only failed to achieve the aesthetic effect of a long front but also looked a bit clumsy (ugly).

Mercedes - Benz S and Mercedes - Benz EQS, Image source: Dongchedi

In the design of the Xiaomi SU7, not only was the front end deliberately lengthened, but a more streamlined fastback shape was also adopted, and the car height was consciously lowered.

This concept was inherited by the YU7 with an L113 as long as 680mm. Xiaomi's promotional materials call it the "long - front luxury design that has been refined in the automotive industry for a century."

From a practical perspective, compared with indicators such as energy consumption, space, and maintenance costs, the appearance and excessive power are indeed "useless." However, this precisely reflects Xiaomi's design concept for cars: Practicality gives way to personalization. On the premise of meeting personalized needs, practicality should be taken into account as much as possible.

The Xiaomi SU7 adopts a styling design that matches its sporty positioning, creating a visible difference from similar models with a strong Corolla - like flavor. However, the price is the sacrifice of the practicality of the rear - seat space.

In the design of the YU7, its height (1608mm) is lower than that of the Model Y (1624mm), XPeng G6 (1650mm), and NIO ES6 (1703mm). Correspondingly, there is also a compromise in space - Xiaomi even didn't officially announce the trunk volume.

This concept may seem contrary to the mainstream car - buying needs. However, as the saying goes, one can't buy satisfaction with money. Consumers will accept the product's shortcomings corresponding to its distinct features and pay a higher premium for a differentiated experience.

Therefore, the design concept that Xiaomi adheres to in its cars actually verifies two questions in the real market environment:

First, to what extent can the "emotional value" provided by the long front, large hood, and streamlined appearance be accepted by the consumer market?

Second, what is the actual market space corresponding to the product concept of sacrificing practicality for personalization?

Young and Wealthy

In the multiple rounds of public predictions before the launch of the Xiaomi SU7, there were far more doubts than affirmations. However, in less than a year, the delivery volume exceeded the 200,000 mark.

The maturity of the industrial chain is indeed one of the factors contributing to Xiaomi's success. However, the problem is that a mature industrial chain is open to the entire automotive industry. A more direct factor driving the sales of Xiaomi cars lies in the drastic changes that have taken place in the Chinese automotive market in the past five years:

First, the proportion of non - family consumers has increased; second, the average age of first - time car buyers has decreased structurally.

According to the statistics of the Yiche Research Institute, from 2014 to 2023, the proportion of single users in the Chinese automotive market increased from 10% to 22%. During the same period, the overall automotive market only grew by 28%.

Although the proportion is not high, due to the huge volume of car sales in China, if single users are regarded as an independent market, the scale of about 5 million vehicles has already exceeded that of traditional automotive powers such as Japan, Germany, and the UK.

Meanwhile, when measured by generations in decades, the average age of first - time car buyers among different generations has been continuously decreasing. According to Roland Berger, from 2017 to 2022, the proportion of car - buying groups aged 21 - 30 increased by 11%, which also led to a decrease in the average age of the first - time car - buying group.

Considering the increase in the average age of first marriage in China during the same period, the proportion of family users is likely to be further compressed.

That is to say, the structure of the automotive consumer market is gradually becoming younger. In this situation, the consumer demand in the automotive market will gradually shift from practicality to personalization.

The reason is not difficult to understand. Family cars are characterized by the need to "have it all": most of the time, only one person drives, but the scenarios of family travel must be considered; long - distance trips are rare, but the need to go home for the Spring Festival must be taken into account. In this situation, the demand will inevitably lean towards practicality.

However, in the demand range of younger non - family users, compared with practical parameters such as space and energy consumption, the "emotional value" brought by the long front, large hood, and streamlined appearance will carry more weight in specific consumption decisions.

When social wealth and commodity supply accumulate to a certain extent, the differentiation of consumer demand becomes inevitable. When the Xiaomi SU7 was launched, Lei Jun once responded to the question of "why make a sedan instead of an SUV," which coincided with the change in the market structure:

1. Sedans are more suitable for single - person driving and can also take family needs into account; 2. Sedans are easier to make "good - looking and easy to drive"; 3. Most young people's dream cars are sedans.

For consumers twenty years ago, being able to drive a sturdy and durable Santana was already a great pleasure in life, comparable to a round - the - world trip. However, with the growth of social wealth, the demand for personalization will expand, and the "emotional value" will start to be accepted by the consumer market.

Neither the long front of the YU7 nor the 1548Ps horsepower of the SU7 Ultra can be considered "practical." However, there is no absolute and close connection between the practicality of a commodity and its market acceptance.

Most compact SUV owners don't really like compact SUVs. For various reasons, they can't become owners of AMG C63 and BMW M4 for the time being.

More Courageous in Gambling

It has long been a market consensus that Xiaomi will launch an SUV to boost sales. However, it's a bit surprising that Xiaomi is still taking a bold and unconventional approach with the SUV.

The reason is that, as a globally recognized high - volume model, the original intention of the SUV was to cover as many practical indicators as possible, such as passenger and cargo space and road passability. It not only goes against personalized needs but also has much less room for creating "emotional value" compared to sedans.

Among the top ten best - selling models globally last year, there were six SUVs, including two "American SUVs," the Ford F - 150 and the Chevrolet Silverado. There were only two sedans, and they were the ever - green epic models, the Corolla and the Camry.

From Porsche to Ferrari, every sports - car brand that once scoffed at SUVs has eventually been proven wrong - it's true that young people have their dream cars, but car companies also have their own OKRs.

In China, SUVs are the undisputed main battlefield for new - energy vehicles. The reason is that SUVs match the largest consumer demand for family cars. Whether it's mass - market models in the 100,000 - 200,000 yuan range or high - end models above 300,000 yuan, the position of SUVs is rock - solid.

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