Shu Qi and Su Bingtian as Brand Ambassadors! Lei Jun Discusses New Generation Xiaomi SU7: Pressure Like "Making a Movie Sequel," Material Costs Increase by Nearly 20,000 Yuan, Aims to Create a Porsche 911

Daily Economic News Reporter | Li Xing Daily Economic News Editor | Pei Jianru

“We are under a lot of pressure to launch the new generation SU7,” said Lei Jun, founder, chairman, and CEO of Xiaomi Group, during an interview with Daily Economic News on the evening of March 19. He used an analogy: “It’s like Shu Qi making a movie. After the first film succeeds, everyone’s expectations are very high, and making a sequel becomes especially difficult.”

Image source: Daily Economic News Reporter Li Xing

On the same day, Xiaomi Auto unveiled its first product line upgrade. The new generation Xiaomi SU7 was officially launched, offering three versions: Standard priced at 219,900 yuan, Pro at 249,900 yuan, and Max at 303,900 yuan. Compared to the first-generation SU7, the prices of all three versions increased by 4,000 yuan.

In the interview, Lei Jun admitted that pricing the new generation SU7 was “particularly tricky” because the new vehicle’s material costs alone increased by nearly 20,000 yuan.

“Xiaomi hopes to make the SU7 a legendary model, just like Porsche built the 911 over decades,” Lei Jun said.

Price Adjustment Influenced by New Energy Vehicle Purchase Tax Changes

Regarding the reason for the price increase of the new generation SU7, Lei Jun explained that it was mainly due to two factors. First, the new vehicle has significantly improved in configuration and overall quality. Second, many components in the supply chain have seen rapid price increases recently. “Taking the standard version of the new Xiaomi SU7 as an example, it has over 100 upgrades, with material costs alone increasing by nearly 20,000 yuan,” Lei Jun stated.

Image source: Live broadcast screenshot

It is worth noting that in January this year, Xiaomi Auto announced the pre-sale price of the new generation SU7. Based on the pre-sale price, the standard and Pro versions increased by 14,000 yuan, and the Max version by 10,000 yuan compared to the old model. However, the final retail prices show that the new generation SU7 is priced 4,000 yuan higher than the old model.

Lei Jun said this adjustment mainly considered changes in the new energy vehicle purchase tax policy. To prevent the new vehicle from exceeding consumers’ budgets, the final pricing was decided accordingly.

Lei Jun introduced that after two years of refinement, the new generation SU7’s product strength has been comprehensively improved—“more attractive in appearance, easier to drive, smarter, and safer.” The main updates include the electric drive system, high-voltage platform, electronic and electrical architecture, and interior redesign.

Specifically, the new generation SU7 features Xiaomi’s Jiao Long chassis, standard equipped with 2200MPa Xiaomi ultra-strong steel, nine airbags (including two additional rear side airbags), Xiaomi Pao Pao intelligent cockpit, triple redundancy door handles, and lidar.

In terms of power, the new SU7 is equipped with a V6s Plus motor, with a maximum speed increased to 22,000 rpm. The Max version’s peak power reaches 288 kW, while the Standard and Pro versions have a peak power of 235 kW. For range, the new generation SU7 Standard, Pro, and Max versions offer 720 km, 902 km, and 835 km respectively under CLTC conditions.

Endorser’s Goal is “Breaking the Circle”

Regarding the market performance of the new generation SU7, Lei Jun expressed “great confidence.” However, he also admitted, “Because the first-generation SU7 was very successful, everyone’s expectations for the new model are very high, and we feel a lot of pressure.” To help the new SU7 quickly “break the circle,” the team decided to invite Shu Qi and Su Bingtian, two real users, to endorse the new vehicle.

Image source: Daily Economic News Reporter Li Xing

In March 2024, the first-generation SU7 was officially launched. Official data shows that the first-generation Xiaomi SU7 has delivered a total of 381,000 units.

In response to netizens’ doubts that “the appearance of the new generation SU7 is not much different from the old model,” Lei Jun explained that the company’s design consultants believe “a successful model should not be changed arbitrarily, especially the appearance.” “Xiaomi Auto’s design philosophy is to create designs that stand the test of time. Look at successful models worldwide—after decades of evolution, their shapes hardly change when viewed in retrospect. So we must be very cautious. A popular model, especially its appearance, should be changed very carefully,” Lei Jun said. “If users think it’s good, we can’t just change for the sake of novelty, and ultimately decide not to alter the exterior design.”

“We realized that car-making is a marathon, and Xiaomi Auto’s journey has just begun. I think we have become more composed,” Lei Jun summarized the biggest change at Xiaomi Auto, adding, “For this facelift, we informed consumers early and started preparing for mass production of the new SU7 long ago, trying to get every detail right.”