On July 19, 2024, Lei Jun delivered an annual speech titled “Courage.” He shared the story of Xiaomi’s car-making journey over the past three years. The tale was full of ups and downs, resembling an inspiring blockbuster.
Xiaomi faced sudden sanctions. On January 15, 2021, the board held an emergency meeting. A director asked, “What will happen to our 30,000 employees if we can’t make phones?” During the discussion, someone suggested the possibility of making cars.
After over 70 days, 10 cities, and 200 interviews, Lei Jun decided to build cars. Li Bin and He Xiaopeng urged him. The executives supported the decision. To survive in the smart electric vehicle market, Lei Jun aimed for a top-five global position. He needed to invest at least $10 billion. The board required him to participate in the car-making process. At that time, Xiaomi struggled with its high-end strategy. After a week of hesitation, Lei Jun chose to step up.
On March 30, 2021, Xiaomi announced its entry into the automotive industry. Lei Jun’s announcement drew car enthusiasts from around the world. Within six months, Xiaomi built a team of over a thousand people. In three years, the company received 380,000 resumes. Lei Jun emphasized the need to create a car that Xiaomi engineers would want to buy. He stated, “A hundred reports cannot replace face-to-face communication with real users.” After interviewing over 300 Xiaomi engineers and counting cars in the parking lot, Xiaomi decided to start with electric sedans. The technology exists. China’s automotive supply chain is mature. It can easily assemble a car. However, Xiaomi, having learned from its smartphone experience, chose not to acquire or outsource manufacturing. Instead, it focused on core technology to build its vehicles.
The pandemic affected the research and development process. Staff took equipment home to keep the project on track. On August 16, 2023, the first pilot vehicle rolled off the production line successfully.
At the beginning of this year, testers drove 576 sample cars across over 300 cities. They covered 5.4 million kilometers. All executives participated in the testing, contributing a total of 100,000 kilometers. Lei Jun tested about 5,000 kilometers himself.
From Novice to Racer Looking back, the board made a wise choice. They had Lei Jun personally involved, and that decision proved correct. Lei Jun knew little about cars and rarely drove. He took the first step by driving himself. He borrowed cars, experienced them, and visited 4S dealerships. Over three years, he test drove over 170 cars. He recorded more than 200,000 words of notes. He read many biographies in the automotive field. He rewatched racing movies, shifting his focus from the plot to the cars. He discovered that Porsche and Ferrari excelled. This insight may have inspired the design of the Xiaomi SU7 and the upcoming SUV.
Lei Jun believes Ferrari and Porsche excel because their owners are race car drivers. He decided to be the best driver among car company owners. He obtained a racing license, learned drifting, and participated in winter and summer tests. He also encouraged his team to learn racing. Now, over a hundred team members hold racing licenses. These experiences reflect his belief: “Courage is not just a slogan; it’s about taking solid steps.”
Darkness Before Dawn The Xiaomi SU7 focuses on driving pleasure. This pure electric sedan is unprecedented. It faced skepticism before its launch.
Lei Jun stated that the Xiaomi SU7 is the Dream Car designed for achievers. He believes in people’s longing for a Dream Car. He is confident that the SU7 will sell well. In February, he set a production target of over 10,000 units per month and 76,000 units for the year.
Due to courage and confidence, Lei Jun priced the SU7 at 215,900 yuan (29700$). This was only 30,000 yuan (4130$) less than the Model 3. The SU7 launched and quickly sold well. The annual delivery target rose from 100,000 to 120,000. This story of building cars stems from unexpected challenges. It reflects a commitment to persevere. “Courage is our best response to this era.”
