The new Xiaomi car, SU7, is launching at the end of this month. Will it have a market in Cambodia?

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Phnom Penh, Cambodia – March 14, 2024 – As the global automotive industry rapidly evolves, particularly in the fiercely competitive new energy vehicle sector, Xiaomi Group is set to unveil its first electric vehicle, the Xiaomi SU7, on March 28th, further expanding its business portfolio. As one of Xiaomi’s major innovation projects, the launch of the Xiaomi SU7 has garnered widespread attention in the industry.

However, facing the fiercely competitive global market, can the Xiaomi SU7 carve out a niche for itself in the emerging market of Cambodia?

Overview of Xiaomi SU7

The Xiaomi SU7, as Xiaomi Group’s first electric vehicle, has attracted attention for its high-end technological specifications and smart features. With a C-class car size, a low drag coefficient of 0.195Cd, acceleration from zero to 100 in 2.78 seconds, and a long-range capability of 800 kilometers, the Xiaomi SU7 demonstrates Xiaomi’s strong capabilities in the new energy vehicle sector. Relying on the HyperOS intelligent cockpit and fully self-developed intelligent driving technology, the Xiaomi SU7 offers users an exceptional driving experience.

Cambodian Market Analysis

As an emerging market in Southeast Asia, Cambodia is gradually changing its attitude towards new energy vehicles, with the market’s acceptance of new energy vehicles gradually increasing.

On March 14th, INNEWS reporters interviewed the Chief Operating Officer Li Tao of the Cambodian car sales platform Liberty Carz and Jacky, a sales manager of a car company in Cambodia, providing different views on the prospects of Xiaomi SU7 entering the Cambodian market.

01 “The Prospects of Xiaomi Cars Entering the Cambodian Market Are Not Very Clear”

Li Tao expressed skepticism about the prospects of Xiaomi cars in the Cambodian market, despite the global emphasis on new energy vehicles.

Li Tao believes that Xiaomi cars face significant challenges in the Cambodian market, mainly in terms of brand recognition and price positioning. He pointed out that Xiaomi’s recognition in Cambodia is mainly limited to the mid-to-low-end market, and the high-end positioning of the Xiaomi SU7 may struggle to attract enough buyers.

Especially in the Cambodian car market, where new energy vehicles are still in the early stages, the rise of new energy vehicles is largely due to price advantages. Based on the current market situation, the lower price of new energy vehicles compared to fuel vehicles is an important factor in gaining consumer attention.

“According to Lei Jun’s previous statements, the cost of the Xiaomi SU7 is high, and the price will not be particularly cheap. Online predictions suggest that the high-end version may cost around 350,000 yuan, while the low-end version may be around 250,000 yuan. According to the latest report from Cailian Press, it has exclusively learned that the Xiaomi SU7 will offer two versions, including a standard version and a high-end version, with the SU7 Max version exceeding the top version of the Wenjie M5 (309,800 yuan).”

“If the price of Xiaomi cars exceeds 60,000 USD, then such a price for new energy vehicles would be hard to appeal to the Cambodian market,” Li Tao pointed out.

Moreover, he also holds a conservative view on Xiaomi’s experience in the automotive manufacturing sector as a newcomer. Li Tao believes that high-end customers have more mature car brands to choose from and might not lean towards choosing a brand known mainly for producing electronic products.

“Although the Xiaomi brand has a high degree of recognition in the fields of smartphones and home appliances, it lacks corresponding experience and consumer trust in the automotive industry. The biggest problem facing Xiaomi cars in Cambodia is low market recognition, and consumers may have reservations about a brand known mainly for electronic products entering the automotive industry,” he said.

He also mentioned that the insufficient charging infrastructure in Cambodia could also be a key factor limiting the market performance of the Xiaomi SU7.

02 “Xiaomi Cars Could Become a New Market Player”

In stark contrast to Li Tao’s view, Jacky is optimistic about the performance of the Xiaomi SU7 in the Cambodian market. He believes that as Cambodian young consumers’ acceptance of new technology and new energy vehicles increases, the Xiaomi SU7, with its advanced technology and smart features, is expected to find its positioning in the Cambodian market. Especially since young consumers in Cambodia are open to new technology and new brands, Xiaomi’s entry into the automotive sector might attract this group’s interest.

“The new energy vehicle brands with high recognition in the Cambodian market mainly include Aion, Hongqi, Denza, BYD, Dongfeng, etc. According to market research, the consumer group aged 25 to 45 in Cambodia favors new energy vehicles.”

Jacky emphasizes that the design sense, environmental features, and smart driving experience of new energy vehicles are important factors attracting young consumers. He also points out that as the government supports new energy vehicle policies and gradually builds charging infrastructure, the popularity of electric cars in Cambodia will gradually increase.

Jacky believes that with the improvement of new energy vehicle recognition and charging infrastructure, the Xiaomi SU7 has the potential to gain a foothold in the Cambodian market.

However, the success of the Xiaomi SU7 in the Cambodian market is an unknown, facing views from different fields. The market performance of the Xiaomi SU7 will depend on various factors, including the acceptance of brand transformation, the improvement of new energy vehicle infrastructure, and market education for the target consumer group. Regardless of the outcome, the launch of the Xiaomi SU7 will undoubtedly add new vitality to the new energy vehicle market in Cambodia and globally. As the market further develops and consumer awareness increases, the future of the Xiaomi SU7 in Cambodia is filled with possibilities.

As time goes on, the market will provide the final answer.