2024.03.31 01:05
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The first weekend after the listing of Xiaomi Motors: Nearly 10,000 store visitors, test drives lined up until 3 am, how will competitors respond

After the first weekend of Xiaomi's car listing, nearly 10,000 customers visited the stores, and test drives were scheduled until 3 a.m. The buzz created by Xiaomi's car launch also affected its competitors, with Nio's store traffic noticeably decreasing. The store receives over 5,000 customers daily, and those who pay a deposit can jump the queue for test drives

After test driving until 3 a.m., getting off work at 4 a.m., going home to sleep at 6 a.m., and starting work again at 9 a.m., with only two hours of sleep each day since the launch event.

Xiaomi's car sales remain strong after its listing. On March 30th, the first weekend after the launch of the SU7, a reporter from The Paper News visited multiple Xiaomi car stores in Shanghai. A store manager revealed the recent "schedule" to the reporter.

Almost all stores were packed with a large number of spectators, with long lines outside. Some staff members admitted that it is common for test drives to last until 2 or 3 a.m., saying they had never seen so many people before.

On the evening of March 28th, the first Xiaomi car was officially launched, with Lei Jun announcing prices ranging from 215,900 yuan to 299,900 yuan. Orders began at 10 p.m. on the 28th.

According to official data, sales of Xiaomi cars surged after the launch, breaking 10,000 in 4 minutes, 20,000 in 7 minutes, and 50,000 in 27 minutes. After 24 hours of listing, Lei Jun announced on his official Weibo account that the number of pre-orders for the Xiaomi car SU7 exceeded 88,898 units in one day.

The popularity of Xiaomi cars has also affected many competitors. "Today I went to the Joy City store in Jing'an District, and it was so crowded that people even spilled over to the neighboring Nio store," one spectator joked to the reporter, "It was a bit awkward, even the salespeople at Nio looked green."

Daily in-store traffic exceeds 5,000 people, paying a deposit allows you to "cut in line" for a test drive

"Please cooperate, once we let you in, the order will be disrupted."

When a reporter from The Paper News arrived at the Joy City store in Jing'an District, it was already packed inside and out with onlookers. The store manager held up a megaphone, asking every test drive customer to line up, saying, "I haven't had a good night's sleep for 5 days." In the midst of conversation, he stopped a customer trying to cut in line.

"Yesterday, the number of on-site orders (deposits paid) reached 800 people, and today it has exceeded 1,000 people." He pointed to the order page on his phone and said, "For the past two days, the daily traffic has reached 6,000 to 10,000 people." Due to the overcrowding of customers in line, the store also prepared bottled water to distribute to customers.

"The store is packed today, from noon to evening, there hasn't been a moment of rest. If you want to see the car, you have to come early on weekends, starting from noon to queue up to enter the store, it is estimated to take about two hours." A staff member at the Century Link car store in Pudong New Area told the reporter, pointing to a clothing store in the distance, saying that at the busiest times, the line extended all the way to the other end of the mall, with an expected queue of over a hundred people It is worth noting that due to the overwhelming demand for test drives, several store staff members told reporters that users who have paid the deposit can "cut in line" for priority test drives on the spot, while users who have not paid the deposit may have to wait for a test drive opportunity for up to two weeks.

On March 29th, Xiaomi officially responded that each store is expected to have about 90-120 test drive participants per day, with current reservations waiting for approximately 3-5 days.

Previously, the issue of Xiaomi SU7 deposits being non-refundable had sparked public opinion on social media. Some users claimed that after paying the deposit for Xiaomi cars, they were unable to get a refund, calling it a "bullying clause."

In response, Xiaomi Car's official Weibo account released "Xiaomi SU7 Answers to Netizens' Questions," stating that in the Xiaomi Car app purchase process, there were a total of three prompts about the non-refundable lock-in, with a direct pop-up reminder when finally "locking in the configuration." They hope everyone will choose carefully before locking in the configuration.

Xiaomi stated that a full refund is possible within 7 days. However, Xiaomi also provided the option to proactively lock in the configuration, which means once the configuration is locked in, the order is completed, and the vehicle will enter the production stage. At this point, the deposit becomes non-refundable.

Wait-and-see attitude prevails, cautious ordering

Who exactly is Xiaomi's first car customer group?

Reporters visiting several stores found that the majority of the crowd on-site were young people, with many college students observing and test driving, and middle-aged people accompanying young people to join in the excitement. Despite the bustling atmosphere, many consumers admitted to reporters that they were mainly there to watch and were not considering purchasing at the moment.

"I'm not ready to buy yet because I think there will be another price drop." A consumer told reporters, "There are many types of cars available in the price range of 200,000 to 300,000 yuan, and there may be even lower-priced products in a few months. Technological products are updated very quickly."

In addition, several consumers complained to reporters that the car's space was not spacious enough, "the rear seats are a bit cramped, and the driver's seat in the front is somewhat limited in legroom." A taller consumer admitted, "The rear seats are not suitable for two adults, but children can sit comfortably. Overall, as a family car, the space may not be sufficient, and it is more suitable for single or double driving." However, some consumers have expressed their approval of Xiaomi cars, saying "the price is indeed quite reasonable. In addition, compared to other domestic new forces brands such as Nio, Li Auto, etc., they would still choose Xiaomi SU7, or directly pay more to go for BMW, Mercedes-Benz, or Tesla."

The staff at the Century Link store in Pudong New Area told reporters that the main focus on-site is still on test drives and experiences, but the number of on-site orders is not high. "This is related to the nature of car consumption. Generally, people need 2-3 weeks to decide whether to buy or not, unless they are already die-hard fans of Xiaomi."

In addition, reporters contacted several Xiaomi car stores in Beijing by phone. The customer service at the Hui Sheng Hui car experience store in Beijing said, "The queue is not long at noon, but you still need to line up." Currently, the store is implementing crowd control measures, and users can experience the actual car by taking a number.

The Hui Ju experience store in Beijing stated that at 8:30 pm, the store was still crowded with users who came to experience the SU7. "It takes over an hour to queue up to enter the store."

Intensified competition in the new energy vehicle market: How will competitors respond?

At the previous Xiaomi SU7 launch event, after Lei Jun announced the price, the founders of Nio who came to show their support showed a somewhat intriguing expression.

Some netizens joked that Lei Jun had invited them to enjoy a performance of Puccini's opera "Tosca" with the aria "Nobody Sleeps Tonight."

The release of Xiaomi cars undoubtedly puts pressure on competitors. Many big names in the automotive industry, while expressing their blessings, also subtly reveal a sense of tension. After the launch event, Nio CEO Li Bin and Lei Jun appeared in a video together and frankly said, "You were too strong today. It's hard for us to price our second brand (Nio's second brand) now!"

Meizu Technology posted, "Old rivals, moving forward together. Welcome Xiaomi cars to join the new battlefield of smart cars."

Now, price wars have become the main theme in the new energy vehicle industry. Shortly after the Spring Festival, BYD took the lead in lowering prices, announcing the launch of the Honor Edition of the Qin PLUS and the Destroyer 05, bringing the price of plug-in hybrid models into the 70,000 yuan range for the first time.

After BYD announced the price reduction, SAIC-GM-Wuling, Changan Qiyuan, NIO, Beijing Hyundai, and Buick, 6 car companies followed suit and announced price reductions for related models.

Regarding pricing strategy, on March 28th, Lei Jun admitted in an interview with the media, "In the pure electric vehicle industry, besides Tesla, I don't know which other company is making money. The pricing of Xiaomi car SU7 needs to make consumers feel our sincerity, and at the same time, the losses incurred should be bearable for us. Our original pricing was 229,000 yuan, and the top version was originally priced at 350,000 yuan. However, later on (due to other car companies lowering prices), we were caught off guard, so we decided to be sincere to the end. The standard version is priced 30,000 yuan lower than the Model 3, and the MAX version is priced at 299,000 yuan."

According to analysis by Huatai Securities, the Xiaomi SU7 is positioned in the 200,000-300,000 yuan price range, with a market capacity of 1.6 million units. The standard version and Pro version compete with Tesla Model 3 (monthly sales of 20,000 units)/ZEEKR 001 (monthly sales of 7,000 units)/ZEEKR 007 (monthly sales of 5,000-6,000 units)/BYD Han EV (monthly sales of 5,000 units)/BYD Dolphin EV (monthly sales of 2,000 units)/BMW i3 (monthly sales of 4,000 units) Max version can be compared to Nio ET5 (monthly sales of 1000-2000 units) / Aweita 12 (monthly sales of 1000-2000 units) / XPeng P7 (monthly sales of 2000-3000 units) / Volkswagen ID7 (monthly sales of 1000 units).

Huatai Securities stated that the standard version of SU7 can surpass the Model 3 Long Range in terms of range, with high styling aesthetics, sufficient technological appeal, and production advantages. It is expected to achieve monthly sales of 8000-10000 units during the volume surge.

"Overall, the pricing of Xiaomi SU7 is still very cost-effective." Zhang Xiang, director of the Vodafone Digital Automotive International Cooperation Research Center, told a reporter from The Paper, "Taking the Model 3 as an example, Xiaomi has a larger overall space than the Model 3, more features, and yet the price is cheaper, so overall it is indeed attractive. After Xiaomi introduced such a cost-effective model, it should become a trend for other car manufacturers to follow suit and reduce prices."

Zhang Xiang believes that currently, smart cars generally have fewer software features and relatively single functions. With Xiaomi, a mobile phone manufacturer entering the market, it may enhance the overall software experience in the automotive industry and set a new benchmark for the industry.

"The main reason for the current price competition among car manufacturers is product homogeneity, oversupply, and some car manufacturers must lower prices through promotions to open up the market. To break this cycle, the best way is through innovation." Zhang Xiang stated.

Author: Fan Jialai, Source: The Paper, Original Title: "Xiaomi's first weekend after listing its cars: Nearly 10,000 visitors in stores, test drives until 3 am, how will competitors respond?"