This week, Lei Jun, the company’s chief executive, said that the Speed Ultra 7 (SU7) will cost less than 500,000 yuan ($69,186; £54,836).
With this strategy, the tech behemoth will go up against competitors like BYD and Tesla.
With a slowdown in worldwide sales growth, Xiaomi has entered the electric car market, starting a price war.
The company is expecting that by using the same operating system as its phones, laptops, and other gadgets, the SU7 will become more popular with its current clientele.
Xiaomi holds a market share of approximately 12% and is the third-largest smartphone seller globally, as per research firm Counterpoint.
It will be produced at a Beijing plant with the capacity to create up to 200,000 cars annually by a division of the state-owned automaker BAIC Group.
“While getting this far is itself quite an achievement, the ultimate achievement would be to demonstrate that there is a consumer market for Xiaomi as a smart EVs brand,” Bill Russo of Automobility said in a statement.
