Cui Dongshu: The domestic retail penetration rate of new energy passenger vehicles continues to exceed 50%, and domestically produced high-end pure electric cars have surpassed Tesla.

On the evening of December 28, Cui Dongshu, Secretary General of the China Passenger Car Association, announced that the retail sales of new energy vehicles in the first 11 months of 2024 reached 9.59 million units, an increase of 41%, showing a relatively strong trend compared to the 36% growth in retail sales of 7.75 million units in 2023. It is expected that the annual domestic retail sales of new energy passenger cars in 2024 will reach 10.9 million, with the domestic retail penetration rate of new energy passenger cars continuing to exceed 50% in the second half of the year, making it an absolute highlight in the sluggish global new energy vehicle market. This year, many domestic new energy vehicle brands have emerged, some still in their infancy, while others have disappeared. The key factor determining whether a company survives has shifted from primarily marketing to emphasizing product quality, signaling a shift towards a product-centric era in the current automotive market. Looking back on 2024, the continuous breakthrough of independent high-end vehicles was a big surprise, with Xiaomi's new product launch being a major highlight. The Xiaomi SU7 became one of the most anticipated models in the Chinese automotive industry in 2024 and a major variable in the industry. Unlike many other automotive brands, Xiaomi boldly chose "sporting" and "sedan" as the key features for its debut model. Despite initial doubts and skepticism from many automotive critics, the Xiaomi SU7 has proven to be successful in the pure electric sedan market, stimulating overall market vitality in this segment. Xiaomi's core strength lies in its focus on technology and user benefits. As a sporty electric sedan priced around 200,000 RMB, Xiaomi has invested heavily in self-developed core components and utilized AI to enhance quality control, resulting in outstanding performance in daily and extreme testing. For example, the SU7 is the only sedan to receive a 3G+ and A rating in the China Insurance Research Institute's safety tests. Xiaomi's success is also attributed to the strong support from its loyal fans, similar to how early adopters of the Hammer smartphone were key customers. Xiaomi's fans continuously support the brand by purchasing its products, including the Xiaomi car, based on the advantages of its integrated ecosystem, allowing users to enjoy smart home features both indoors and outdoors. Xiaomi frequently emphasizes the fusion of "people, cars, and homes" in its ecosystem, indicating a mature and complete ecosystem that is highly anticipated in the market. As a key player in the new energy vehicle market, Tesla cannot be ignored, as Lei Jun, Xiaomi's CEO, has positioned Tesla as a benchmark for Xiaomi. While many Chinese brands have aimed to surpass Tesla in the market, none have fully succeeded. Xiaomi's ambition to catch up and ultimately surpass Tesla with the SU7 is a significant milestone for the Chinese automotive market. With a large fan base and high brand awareness, the success of the SU7 in sales and reputation is a clear indication of Xiaomi's potential to surpass Tesla. Xiaomi's commitment to technology and safety is reflected in the SU7's superior performance in various tests, surpassing Tesla's Model 3 in sales of luxury sedans priced above 200,000 RMB and becoming the top-selling mid-sized pure electric sedan in the market. Overall, Xiaomi's aim to compete and surpass Tesla reflects its determination to lead the electric vehicle market. By relying on its strengths and setting high goals, Xiaomi aims to achieve superior results and continue making breakthroughs in the future. Xiaomi has already announced the upcoming launch of the YU7 in 2025, which will continue to compete with Tesla's Model Y. The only concern remains Xiaomi's production capacity, as the demand for the SU7 has been high, leading to challenges in meeting production targets. However, with the successful completion of deliveries of 130,000 SU7 units and exceeding annual targets, it is expected that Xiaomi will successfully increase production capacity and drive further growth in the high-end electric vehicle segment next year.