Xiaomi managed to launch mass production of the car in less than three years. Here’s how he achieved it

One of the technological heroes of the year is Xiaomi SU7, the first car of the Chinese brand. And not only because it is the first, but also because of its high-profile appearance, with characteristics exceeding those of competitors that cost three times more.

But first of all, a big question about Xiaomi SU7: How is it possible that less than three years passed from idea to commercial launch?. Especially considering that a few weeks ago Apple had to cancel its development after investing a lot of time and money. This influenced the CEO of Xiaomi who opened this division on March 30, 2021.

We asked experts to help us find out.

Idiosyncrasy and scale

Brad TempletonThe Canadian software engineer and autonomous mobility consultant, who also worked at Waymo during its creation, explains to us that he can’t talk in detail about these reasons, but leaves us with the first clue: China is not the United States or Europe.

“The Chinese don’t follow the same rules and schedules as Western car manufacturers, and they have a different supply chain,” Brad explains.

These differences are explained in terms of government support for companies engaged in technology innovation and it also exports to the rest of the world, with both financial incentives and more flexible regulations encouraging the development, production and marketing of new products.

However, there is more at stake, and it has to do with timing. Narrated by John Helveston, a professor in the Department of Management and Systems Engineering at George Washington University who specializes in the Chinese electric vehicle industry. Hataka that “it’s easier to build a Ferrari than a Ford.”

It’s not that Helveston is comparing the SU7 to a Ferrari. You’re talking about scale. “Gathering the resources to build a car in relatively small quantities from scratch is not nearly as difficult as mass producing it over many, many years with few or no defects,” the professor explains.

That is, it is one thing to judge Xiaomi by its outstanding achievements reaching the early days of marketing… and another thing to see how the company will age as a car manufacturer.

“Going from zero to production in three years is certainly an achievement, but the longevity of Xiaomi’s success is something we will have to wait to see. When mass producing a complex product like a car, an important part should be monitoring how many defects will there be in the produced fleet? How long will it take to develop and release a new model after this launch? tells us.

Only time will allow us to truly appreciate Xiaomi’s sustained performance. as a car manufacturer. “The automotive industry is complex, and success is measured by years of gestation, not by the speed of the first launch. While three years is an impressive feat, it is not necessarily a measure of success. I’ll have to wait and see.” “Good” are these cars before recognizing this feat as truly noteworthy,” John adds.

Lots of previous work and Beijing Auto figure

Finally, Bill RussoCEO and Founder Automotive, Automotive strategy consulting firm specializing in the Chinese market, co-author of Selling to China, adds another layer: previous work done by Xiaomi CEO Lei Jun.

“Lei Jun actually started investing in the auto industry long before this three-year period through his own venture capital firm and also through Xiaomi. This became known later,” he explains.

These investments are made by Shunwei Capital, Lei Jun’s investment fund, in companies such as Momenta, a self-driving car startup, in 2018. Almost a hundred companies related to electric vehicles, such as Jiangxi Ganfeng Lithium, a lithium producer; CATL, battery manufacturer; or Xpeng and NIO, automobile manufacturers. This gave him access to the best components and technology available.

Rousseau also points to inertia. Particularly a manufacturer accustomed to consumer technology that is not at the same speed as the auto industry. “Technology companies like Xiaomi tend to be faster than traditional car manufacturers,” he adds.

And it ends with one more factor: Beijing Auto, a state-owned company, where several manufacturers produce their cars.. Something that helped Xiaomi increase production flexibility and bureaucracy.

“Xiaomi also took advantage of the existing capacity of the Beijing Auto plant to save time and capital investment by using pre-existing plant infrastructure. It also allowed them to avoid the waiting time to obtain a license that would allow them to produce SU7,” he said. – concludes Russo.

Xiaomi has used multiple resources to achieve much faster development than any competitor expected, and even more so for a completely new manufacturer in the automotive industry. Now the biggest challenge remains: to remain successful, to be able to gradually introduce new models and to make those who bought the SU7 want to repeat the brand in the future. Lei Jun put away his mobile phones for the moment to focus on cars. Your bet is serious.

Meanwhile, the first feat is beyond doubt.

Featured Image | Xiaomi

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