Xiaomi EV is asking its upstream suppliers to boost the supply of components, increasing orders by about 80 percent, according to local media.
(Image credit: CnEVPost)
Xiaomi (HKG: 1810, OTCMKTS: XIACY)'s electric vehicle (EV) unit Xiaomi EV is reportedly increasing its orders to its supply chain as it works to ramp up production capacity.
Xiaomi EV is asking its upstream suppliers to boost their supply of components, increasing orders by about 80 percent, local media outlet Wallstreetcn said today, citing unnamed supply chain sources.
For one category of parts, Xiaomi EV's orders have increased from about 10,000 units per month previously to 18,000 units recently, according to the report.
Xiaomi officially launched its first model, the SU7, on March 28, offering three trims -- standard, Pro, and Max -- with starting prices of RMB 215,900 ($29,830), RMB 245,900, and RMB 299,900, respectively.
The model's Porsche-like design, relatively affordable price, and Xiaomi's marketing have led to a high level of acceptance.
Xiaomi was offering a Founders Edition for the SU7, limited to 5,000 units, with deliveries starting on April 3. Deliveries of the SU7's customized vehicles began on April 18.
In April, Xiaomi EV delivered 7,058 units of the SU7, with a locked-in orders of 88,063 units for the model as of April 30, according to figures it announced on May 1.
Xiaomi was making every effort to expand the SU7's production capacity to accelerate deliveries to ensure that its target of 100,000 units delivered annually this year is met, it said on May 1.
Customers who currently order the Xiaomi SU7 will have to wait at least 30 weeks for deliveries, while the delivery lead time for the highest-priced Max variant is as long as 37 weeks, according to data monitored by CnEVPost.
On the first day of the Beijing auto show on April 25, Xiaomi founder, chairman and CEO Lei Jun said the company was aiming to see monthly deliveries of the SU7 exceed 10,000 units in June.
On April 2, local media outlet Yicai reported that Xiaomi EV had asked suppliers to increase production capacity to match the 10,000-unit monthly output, with higher priority given to the higher-trim variants.
The extraordinarily long wait may have dampened the interest of some potential customers, and for those, Lei had offered his advices.
For those who can't wait for the SU7, the Luxeed S7, Nio ET5, and Xpeng P7 series are also good options, Lei said in an April 22 Weibo post.
($1 = RMB 7.2378)
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