2024.04.02 09:37
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Xiaomi's car locks in 40,000 orders, Lei Jun also has to sleep in the factory

Hard to escape the "production capacity hell"

Author: Chai Xuchen

Editor: Zhou Zhiyu

After the explosive sales of Xiaomi SU7, the most worrying production capacity issue for Lei Jun has emerged.

According to Wall Street News on April 2nd, the current locked order volume of Xiaomi SU7 has exceeded 40,000 units, with a lock-in rate of over 30%. In response to this data, Xiaomi stated that they will focus on improving production and delivery in the future.

For any "new force" in the car manufacturing industry, the initial "production capacity furnace" is a hurdle that cannot be overcome. Whether it's Tesla or Aito, both encountered sales "waterloo" due to production capacity issues after going public. Some industry insiders even joked that Lei Jun may have to sleep in the factory like Musk in order to solve the production capacity problem.

Different from the large order data typically disclosed by car companies, Xiaomi has "redefined" large orders. Typically, the large orders announced by car companies are non-refundable deposits, and the customers who place large orders are usually the most willing to purchase. Xiaomi's "large order" allows for a refund within 7 days, making the actual locked order volume more indicative beyond the officially announced "large orders".

After locking in over 40,000 units, Xiaomi's delivery capability is currently being tested.

In terms of orders, the delivery period of Xiaomi SU7 has further extended compared to last weekend. Currently, apart from some Founder's Edition models that can be delivered at the beginning of this month, the delivery time for the Max version has reached 29-32 weeks; the standard version of SU7 has been extended from the previous 11-14 weeks to 21-24 weeks; and the Pro version has an overall delivery period delayed by about 8 weeks, reaching 19-22 weeks.

This means that if a consumer orders the SU7 Max version now, they will need to wait for about 8 months, until the end of this year to receive the car. Some consumers have also stated that they were the earliest to order the Founder's Edition model, originally scheduled for delivery on April 3rd, but the sales feedback now indicates that the delivery time may be delayed by 1-2 weeks.

Insiders from the distribution channels have revealed that due to the limited number of stores where SU7 is displayed, the foot traffic completely exceeds the store's capacity, leading some customers to choose to cancel their orders due to the inability to receive proper service and the extended delivery times, adopting a wait-and-see approach based on delivery reputation.

A waiting period of close to half a year will obviously affect the purchasing intention of users. Various products from brands such as Nio ET5, Aito M7, XPeng G6, and Li Auto MEGA have had similar experiences. After the peak of the initial hype for new products passes, with the launch of competing products and more discounts offered, consumers may further consider canceling their orders.

Before the official launch of SU7, Lei Jun also openly expressed his "worries". He mentioned that if everyone rushes to buy, "you'll have to wait one or two years for the first batch, and you'll definitely be cursed at". After the press conference, Xiaomi's senior automotive consultant Hu Zhenan also "Versailles-ly" stated that the production capacity for 2023 is already fully booked, and they are holding overnight meetings to find a solution The current delivery issues with Xiaomi's cars mainly lie in the factory production capacity.

Public information shows that Xiaomi's car factory phase one was completed in June last year, with an annual production capacity of 150,000 units. Phase two is planned to be completed next year. According to previous plans, Xiaomi's car production capacity in April was around 4,000-5,000 units, stabilizing at 6,000 units per month by the end of the year, resulting in an annual delivery capacity of around 60,000 units for Xiaomi this year.

Another Xiaomi supply chain source mentioned that suppliers have been notified in advance to prepare for stock, so there shouldn't be a supply shortage in the initial stage. The main issue for Xiaomi's cars lies in their own factory assembly and painting capacity, and it may be difficult to make substantial changes to the production capacity within six months.

This means that after saturating orders this year, it will be challenging for Xiaomi's car production capacity and delivery capability to be significantly adjusted, and how to stabilize consumer expectations and retain existing orders will be a problem that Lei Jun needs to solve.

Outside the door, Richard Yu has already started organizing the mass production of the Aito S7, while competitors in the same field such as XPeng, Aito, and Voyah have also played their price cards, taking advantage of Xiaomi's initial production capacity constraints to "recapture" the enthusiasm of Xiaomi fans during this window period.

For Xiaomi's cars and Lei Jun, who will be entering the final from the beginning, this hurdle must be overcome