Xiaomi made a significant move into the European auto market by showcasing its first electric car, the SU7, during the Paris Olympic Games.

The SU7 is positioned as a mass-market vehicle with a starting price of 215,900 yuan, approximately $30,000.

Since its launch in March, the SU7 has performed well in China, with sales projected to reach 100,000 units by November.

Entering a highly competitive Chinese EV market, which features over 100 brands and aggressive price wars led by BYD, poses challenges for Xiaomi.

Xiaomi's entry comes amid heightened tariffs on Chinese-made electric vehicles imposed by the European Commission and the U.S.

To support its ambitions, Xiaomi is investing $10 billion in its electric vehicle division as part of a long-term strategy.

The company is also expanding its Beijing EV plant to meet growing demand and plans to produce a sport utility vehicle to compete with Tesla's Model Y.

Xiaomi's CEO, Lei Jun, has set ambitious goals, aiming to become one of the top five global players in the electric vehicle market within the next 15 to 20 years.

To enhance its credibility in the automotive sector, Xiaomi established a pit garage at the Nürburgring in Germany, a renowned racetrack for vehicle testing.

The global auto industry is currently facing challenges, with established companies like Porsche and GM scaling back their EV ambitions due to slowing growth.

In June, Chinese brands captured 11% of Europe’s EV market, marking a significant sales increase just before the implementation of tariffs.

Despite these challenges, Xiaomi's initial performance in the EV sector has been impressive, positioning the company well for future growth.