By Jiahui Huang

Chinese consumer-electronics giant Xiaomi launched its new luxury electric vehicle with a lower-than-expected price tag, as competition ramps up in China's electric-vehicle market.

Xiaomi is selling its new four-door SU7 Ultra sedan at a starting price of 529,900 yuan, equivalent to around $73,000, Chief Executive Lei Jun said late Thursday. That is 35% lower than the 814,900 yuan starting price quoted when presales started in October.

"We believe SU7 Ultra could beat its [sales] target given the price cut and freebie offerings as well as a precise target marketing effect, which provides higher gross margin support for the overall EV business," Citi analysts said in a note.

Earlier this month, Lei had said Xiaomi's 2025 sales target for the SU7 Ultra model was 10,000 units.

Xiaomi is marketing the new sedan as a luxury model, targeting the high-end segment, which Deutsche Bank analyst Bin Wang says marks the company's entry into the luxury EV market.

The SU7 Ultra will be equipped with Xiaomi's autonomous-driving technology, which Wang thinks should help the company grow its market share.

Overall, Xiaomi said it aims to sell 300,000 vehicles in 2025.

Xiaomi's shares were last down 1.1% at 52.50 Hong Kong dollars, equivalent to US$6.75, in Friday trading. The benchmark Hang Seng Index fell 2.2%, as risk-off sentiment dominated following President Trump's fresh tariff threats overnight.

Write to Jiahui Huang at jiahui.huang@wsj.com

(END) Dow Jones Newswires

February 27, 2025 22:21 ET (03:21 GMT)

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