Since the announcement of Xiaomi's entry into the automotive industry, rumors have been abundant. Currently, the only confirmed detail is the release of a new car 2024. As Xiaomi's car launch timeline draws near, the veil of mystery surrounding Xiaomi's car manufacturing is gradually being lifted.
Recently, there were reports suggesting that Xiaomi's car was undergoing road tests in Xinjiang. Xiaomi's founder and CEO, Lei Jun, and President, Lu Weibing, were both seen participating in the road tests in Xinjiang.
Following that, Chinese media Jiemian cited insiders from Xiaomi, revealing that in 2023, Xiaomi's first and second-tier car battery suppliers will be CATL and CALB.
Regarding Xiaomi's battery suppliers, there was previous speculation that CATL and BYD would be involved. However, an insider from BYD has revealed that Xiaomi's car is not among BYD's customers.
Reports indicate that CATL has been designated as Xiaomi's first-tier battery supplier. Given that Xiaomi's initial production capacity is still on a learning curve and requires gradual improvement, Xiaomi's bargaining power is not particularly high. It's reported that the cost of purchasing a battery module for Xiaomi is approximately CNY800,000, and considering that the battery cost accounts for about 50% of the total vehicle cost, the possibility of Xiaomi pricing its cars below CNY150,000 is not very high.
Once Xiaomi's cars successfully enter the market in 2024, it is rumored that Xiaomi will adjust the proportions of battery purchases from their first and second-tier suppliers based on actual sales volume. There's even a possibility of introducing competitive bidding from other companies like BYD to further reduce Xiaomi's car production costs and maintain Xiaomi's consistent strategy of offering high value for the price.
