Recently, the topic of Xiaomi's automobile has been widely followed. Let's take an objective perspective to delve into the current state of the new energy vehicle market and Xiaomi's positioning within it.

In 2024, the penetration rate of new energy vehicles in the Chinese market is expected to reach 47%, and it may exceed 60% in 2025. This means that starting next year, the incremental space in the domestic new energy vehicle market will significantly shrink, and this year may be the last opportunity for companies to enjoy the benefits of rapid industry growth.

In this context, the market landscape has become stable. Major manufacturers have established solid customer bases, making it not easy for new entrants to shake up the existing structure. Brands such as BYD, Huawei, NIO, Xpeng, Li Auto, and Changan all have their unique market positioning and loyal user groups. Even traditional fuel vehicle brands, such as the Audi A6 and BMW 5 Series, maintain a stable sales trend at this stage.

The target audience for Xiaomi cars mainly consists of young people and female users. The launch of su7 and yu7 comes at the right time, seizing the last opportunity for a slight increase in market penetration in 2024-2025. However, this also means that Xiaomi is actually competing for the last wave of incremental users.

As for the overseas market, although it seems vast, the main new energy vehicle markets—China, Europe, and the United States—have already formed a relatively stable pattern. The market penetration rates in China and Europe are already very high, while competition in the U.S. market is also becoming increasingly fierce.

In this situation, for Xiaomi Motors to establish a foothold in the new energy vehicle market, it not only needs to rely on the brand influence accumulated in the consumer electronics sector but also must excel in areas such as technological innovation, user experience, and cost control. At the same time, how to transform its advantages in the smart ecosystem into competitiveness in the automotive field will also be an important challenge for Xiaomi.

Overall, although Xiaomi's automotive venture faces challenges such as a slowing market growth and intensified competition, it still has the opportunity to carve out its own niche in the new energy vehicle market, thanks to its advantages in technology and deep understanding of the young consumer demographic. The key lies in how to stand out in a limited incremental market and quickly catch up with competitors that have already established their foothold in terms of product strength and brand recognition.