$XIAOMI-W(01810.HK)Lei Jun mentioned the issue of choosing the entry point for car manufacturing in an interview last year. Initially, he deliberately avoided the track of family cars like 🌸 and Li Auto, roughly meaning that these companies were doing so well that they had to avoid their edge and develop discreetly. He chose a relatively niche but technology-accumulation-first route. For the future scale and global positioning, he looks at car manufacturing from a long-term perspective of over 10 years. As for Lei Jun himself, I think he’s beyond reproach. There aren’t many big shots at his level like this. Calling him the Chinese Jobs/Musk is not an exaggeration. Whether it’s losing money or criticizing the products, it’s fine to bash Xiaomi from the perspective of investors and consumers—everyone is an adult and responsible for what they say. I’m voting with my money, choosing to believe in Lei Jun and Xiaomi.
While users choose brands, brands also choose users. From its launch, Xiaomi Auto has positioned itself with the performance/racing track label, naturally attracting many users who enjoy aggressive driving. Additionally, the user profile of Xiaomi smartphone users is already skewed towards younger demographics, which further reinforces the user profile of this car. Another example is Volvo, which positions safety as its core brand value, attracting users who prioritize safety above all else.
In the early days, TSLA was the same. The new energy + FSD label first attracted tech-savvy early adopters with high trust in intelligent features, and there were also some accidents caused by FSD. But later, with the launch of Model 3/Y, TSLA's audience base expanded, becoming the Toyota/Volkswagen of electric vehicles, and the original early-adopter label became less prominent. This is also the inevitable path for new brands to move from niche markets to mass markets.
The issue Xiaomi is facing now may seem like isolated car accidents, but the deeper problem is the core value proposition the brand conveys to users. A core value focused on performance/racing tracks is not enough to support its transition to mass-market appeal.
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