Xiaomi Car Order Transfer Market Cools as Discounts Replace Premiums

Earlier this year, Xiaomi made waves in the electric vehicle market with its YU7 model, which garnered an impressive 240,000 orders within just 18 hours of its launch. At the height of its popularity, order transfers for this model were fetching premiums of up to 20,000 yuan, or approximately 2,800 USD, on secondary markets. This fervor was fueled by the model's promise of advanced features and Xiaomi's reputation for innovation. However, the market has since cooled significantly. According to recent research by Chinese media outlet Lanjinger, the buyback price for Xiaomi SU7 orders has plummeted to around 1,500 yuan, while YU7 orders are now selling for between 2,000 and 3,000 yuan. This marks a stark contrast from the premiums seen just a few months ago.

Several factors are contributing to this shift. Market analysts point to a supply-demand imbalance, noting that many initial orders were speculative, leading to an oversupply in the transfer market. The delivery timeline for the YU7, which can extend up to 48 weeks, has also deterred potential buyers who are unwilling to wait nearly a year for their vehicles. Additionally, a recent accident involving a Xiaomi SU7 Ultra has dampened market sentiment, highlighting concerns over vehicle safety. Despite these challenges, the used car market for nearly-new Xiaomi YU7 models remains somewhat stable. Vehicles with less than 100 km mileage are still being sold at a premium, though this has decreased compared to earlier figures.

Interestingly, while the order transfer market faces difficulties, Xiaomi's overall market performance continues to be robust. In September alone, the company reported sales of 41,948 units, placing it second among new energy vehicle brands in China. Xiaomi's strategic expansion across China, with 402 stores in 119 cities, has played a pivotal role in maintaining its foothold in the competitive EV market. This expansion underscores the company's commitment to growth and customer accessibility.

The cooling of the Xiaomi car order transfer market presents a cautionary tale about the volatility of consumer interest and the challenges of sustaining premium pricing in an evolving market. As the company adapts to these changes, it remains to be seen how Xiaomi will navigate the complex landscape of electric vehicles. The situation also raises broader questions about the future of speculative buying in the automotive industry, particularly as manufacturers face mounting pressure to shorten delivery times and enhance vehicle safety.

In conclusion, while the Xiaomi car order transfer market has cooled, the company's broader market strategy and robust sales figures suggest resilience. As Xiaomi continues to innovate and expand, the lessons learned from this recent downturn may well inform its future strategies, both in terms of product offerings and market positioning. For consumers and industry watchers, the evolving dynamics of Xiaomi's market presence offer valuable insights into the rapidly changing landscape of electric vehicles.