China's latest EV is a 'connected' car from smart appliance maker Xiaomi

Xiaomi, a well-known maker of smart consumer electronics in China, is joining the country's booming but crowded market for electric cars.

The tech company will start taking orders for the SU7, a sporty four-door sedan, following a launch event with founder Lei Jun in Beijing on Thursday evening. Analysts think it will be priced in the 300,000 yuan ($40,000) range.

Government subsides have helped make China the world's largest market for electric vehicles, and a bevy of new makers are locked in fierce competition. Most of the industry's sales have been domestic, but Chinese makers are pushing into overseas markets with lower-priced models, posing a potential challenge to European, Japanese and American auto giants.

Lei is not bashful about that challenge, saying at an unveiling of the SU7 in December that Beijing-based Xiaomi aims to become one of the world's top five automakers in the next 15 to 20 years.

«I believe that one day, Xiaomi EVs will be a familiar sight on roads around the world,” he was quoted as saying in a company news release.

Xiaomi, founded in 2010, is entering an overcrowded market that analysts expect will undergo a shakeout in coming years, with weaker startups falling by the wayside.

The combined share of EVs and hybrids in China's auto sales is likely to reach 42% to 45% this year, up from 36% in 2023, according to Fitch Ratings. But the agency said in a December report that the competition could put pressure on automakers' short-term market share and profitability.

Known for its affordable smartphones, smart TVs and other devices, Xiaomi aims to capitalize on that technology by connecting its cars with its phones and home appliances in what it calls a “Human x Car x Home” ecosystem.

Tu Le, the