Lei Jun Responds to Xiaomi Auto Customization Service: Optional Configuration Exceeds 100,000 Yuan, with a Maximum Monthly Production of 40 Units

Summary

Lei Jun, founder of Xiaomi, announced that the company’s car customization service requires a configuration cost exceeding 100,000 RMB, with a maximum monthly production capacity of 40 units. This announcement followed the launch of Xiaomi’s YU7 and SU7 Ultra customization services at the autumn product launch event.

Impact Analysis

So basically, Xiaomi is trying to break into the luxury car market with a customization service that feels more like a brand statement than a volume play. The interesting part isn’t the 100,000 RMB price tag, but the fact that they’re capping production at just 40 units a month. This suggests they’re testing the waters, perhaps to gauge demand or refine their production processes before scaling up. The market’s missing that this isn’t just about selling cars—it’s about Xiaomi positioning itself as a premium brand, akin to what Porsche does with its bespoke services, but at a lower price point. However, the execution risk is high; if they can’t scale this effectively, it could just be a costly experiment. Watch for how competitors respond and whether Xiaomi can ramp up production without compromising quality.Zhitong+ 2Zhitong