$XIAOMI-W(01810.HK) It is said that Xiaomi's third car model will be a range-extended SUV.

As cars become increasingly consumer-electronics-like, with mature supply chains and range-extended technology being less difficult than plug-in hybrids, it is not difficult for Xiaomi to make a range-extended car.

From the perspective of industry dividends in the next two years, hybrids will still dominate. Given the low technical barriers, remaining industry dividends, and Xiaomi's expertise in marketing and selling cars, it is completely reasonable for Xiaomi to make a range-extended car. In fact, it was previously reported that after launching two pure electric cars, Xiaomi would also lay out a hybrid line.

Range-extended cars are more profitable than pure electric cars, and this decision is clearly driven by sales. But in the long run, according to Dolphin Research, car manufacturing must rely on self-developed batteries and self-controlled car/battery production capacity to achieve long-term differentiation. Dolphin Research is more concerned about Xiaomi's layout in these long-term competitive advantages.