Xiaomi CEO Lei Jun: market for connected vehicles is large enough for Chinese automakers to unite in healthy competition and progress together

On 17 October, Xiaomi CEO Lei Jun delivered a speech at the 2024 World Intelligent Connected Vehicles Conference, where he presented four proposals for the industry. He also called on Chinese automakers to remain united and engage in healthy competition to foster growth within the intelligent connected vehicle industry.

The 2024 World Intelligent Connected Vehicles Conference, co-hosted by the Ministry of Industry and Information Technology, the Ministry of Transport, and the Beijing Municipality, was held in Beijing on 17 October. It has been successfully held for six consecutive years since 2018. This year’s exhibition covers an indoor and outdoor exhibition space of 50,000 square meters, with a total of 252 companies and institutions participating. Major car brands that participated include Dongfeng Group with its Voyah brand, BAIC Group with Hycan and Arcfox, FAW Group with Hongqi and Bestune, as well as Geely, GAC Aion, FAW Toyota, BMW, Seres (AITO), Xiaomi Auto, JAC Motors, Deepal, NIO, Avatr, Guotang Auto, and more. In terms of the broader industry ecosystem, leading companies like China Telecom, Huawei, CATL, Didi, Meituan, NavInfo, Beijing Sanitation Group, ZTE, Haomo.AI, Mogo Auto, SemiDrive, Chuhang Technology, and others showcased their latest advancements in intelligent, connected, and electrification technologies and applications.

In recent years, Xiaomi has ventured into the connected vehicle market, with Lei Jun personally leading the company's automotive business. Xiaomi plans to launch smart electric vehicles in the coming years, aiming to create competitive products through technological innovation, intelligent features, and affordability. This move is part of Xiaomi's broader strategy to achieve a fully integrated "smart life" ecosystem, encompassing the user’s home, vehicle, and personal technology.

The Speech of Lei Jun:

Distinguished guests, good afternoon.

On March 28th of this year, right here in this venue, Xiaomi officially launched its first car, the Xiaomi SU7. On April 3rd, we delivered the first vehicle at the Xiaomi Automobile Factory. In the first month, we delivered 7,000 cars, achieving immediate deliveries upon launch. By the third month, deliveries exceeded 10,000 units. This month marks the seventh month since the launch of the Xiaomi SU7, and we are pushing hard to hit the 20,000-unit delivery milestone. We expect to deliver 100,000 units by November, fulfilling this year’s target.

Since the launch of Xiaomi SU7, we’ve received a lot of feedback from consumers. Notably, more than 50% of users upgrading or replacing their vehicles are luxury car owners, over 40% of owners are female (we estimate the actual number is already above 50%), and more than half are Apple users (including those using both Apple and Xiaomi products). After Apple announced it would no longer pursue car manufacturing, we decided to make the Xiaomi SU7 the best car compatible with Apple’s ecosystem.

In the field of intelligent driving, Xiaomi SU7 currently has an activation rate of 88%. During the National Day holiday, users drove a total of 9.33 million kilometers using intelligent driving features.

In terms of safety, the Xiaomi SU7 achieved excellent results in the China Insurance Automotive Safety Index, receiving the highest G+ rating in three major safety tests: occupant safety, pedestrian safety, and vehicle-assisted safety. It remains the only sedan to earn G+ ratings in all three categories, showcasing its outstanding safety performance.

The launch of Xiaomi SU7 represents the completion of Xiaomi’s "human-car-home full ecosystem" strategy. Behind this, Xiaomi has continuously increased its investment in R&D, with this year’s investment expected to reach 24 billion yuan, and next year’s projected to exceed 30 billion yuan.

As a newcomer to the industry, Xiaomi’s understanding of the automotive sector is still maturing. I’m fortunate to attend this conference and would like to make four small proposals:

First, we must continue to innovate in technology and strive to set global benchmarks for both technology and quality.

Recently, Xiaomi SU7 ran laps at the Nürburgring in Germany. When I visited our foreign counterparts, they were surprised, as it’s quite rare for an electric vehicle to attempt this challenge.

Although we didn’t achieve a full lap due to rain during our track reservation, I remain confident because Xiaomi has already made good on its promise from three years ago when we first entered the automotive industry: "to start from core foundational technology, invest tenfold, and seriously build a great car."

Our initial focus was on breakthrough core technologies, beginning with the development of electric motors. Xiaomi’s Super Motor V8s is entirely self-developed and produced, reaching an astonishing 27,200 RPM.

The Xiaomi SU7 Ultra currently being tested at Nürburgring is equipped with two Xiaomi Super Motors V8s and one V6s, delivering outstanding performance. Thanks to this solid technical foundation, we now have the opportunity to race at Nürburgring.

The second proposal is about the development of intelligent driving.

Intelligent driving is the soul of smart connected vehicles and a key battleground for the automotive industry. We must increase investment and give it our all.

When Xiaomi entered the smart car industry three years ago, we set a goal to join the top tier of intelligent driving by the end of this year. Over the past six to seven months, I have been very satisfied with our team’s progress, and soon, we will share the latest breakthroughs in intelligent driving with everyone.

Here, I’d like to stress that intelligent driving is still considered an assistance tool. While advancing intelligent driving technology, we must also make it clear to users to use these features safely and responsibly. This is a responsible approach for both the users and the industry.

The third proposal is about unity.

The automotive industry is a century-old sector, currently undergoing a key transformation as it integrates with the consumer electronics industry. The next five years present the best opportunity to reshape the landscape.

In times like this, as we face challenges, we should strengthen unity, enhance collaboration, engage in healthy competition, and progress together. The automotive market is vast, and there is plenty of room for everyone to cooperate and develop the global automotive industry.

The fourth proposal is to build and share an intelligent ecosystem.

Over the past three years of developing Xiaomi vehicles, this idea has become increasingly clear in my mind.

In the six to seven months since the launch of Xiaomi SU7, we have made significant expansions, such as adding one-quarter threaded holes, removable rear screens, and expansion slots.

At this year’s Beijing Auto Show, I discussed this topic with several industry leaders, including Mr. Wang(Wang Chuanfu) of BYD, Mr. Wei(Wei Jianjun) of GWM, and the founders of NIO, XPeng, and Li Auto. They all expressed positive recognition and support, which greatly encouraged me. Since then, we have actively explored this idea with industry peers and made some progress, which we will share soon.

In conclusion, I would like to thank everyone once again for their attention to Xiaomi Motors. Let’s unite and work together to make the entire automotive industry better. Thank you all!