China's Xiaomi vows to take on Porsche, Tesla

Chinese smartphone maker Xiaomi unveiled its first vehicle on Thursday, aspiring to compete with established companies including Porsche and Tesla.

The model, a sedan called SU7, has a size similar to BMW's 5 Series. Xiaomi said the model outperforms Porsche's electric vehicle Taycan and Tesla's Model S in such aspects as acceleration from zero to 100 km per hour and mileage on one charge.

The SU7 is also seen in footage to navigate itself through Beijing's busy urban traffic and park itself at narrow parking lots.

Lei Jun, founder and CEO of Xiaomi, said the company is expected to join the ranks of top-tier players in terms of autonomous driving in 2024.

The sedan is also expected to appeal to customers due to its shared operating system with Xiaomi's popular phones and other electronic devices.

Lei did not reveal the price of the model, which is available in two variants, on Thursday. He added that it will launch the model in several months to come.

Cui Dongshu, secretary-general of the China Passenger Car Association, said he is impressed by the model's performance, adding that pricing will determine whether the model will be a hit.

Xiaomi unveiled its plan to build vehicles in 2021. In an interview with CCTV earlier this month, Lei said the company has spent over 10 billion yuan ($1.4 billion) on the first model, with over 3,400 engineers involved.

Lei expects Xiaomi to grow into a top five automaker worldwide in 15 to 20 years, which means its annual sales will stand above at least 6 million vehicles. So far none of the world's top five car companies is Chinese.

Yet China has been the world's largest vehicle market since 2009 and the largest one for new energy vehicles since 2015.

Sales of electric vehicles and plug-in hybrids reached 8.3 million units from January to November this year, up 36.7 percent year-on-year, according to the China Association of Automobile Manufacturers.