What would happen if Xiaomi built cars and the profit per car was like mobile phones, no more than 5%?

The price of new energy vehicles in that market may lead to a price war and lower prices.

Xiaomi’s first model is most likely to be an economical model. In the previous online voting initiated by Lei Jun, the largest number of people wanted Xiaomi's first car to cost less than 100,000 yuan, followed by 100,000 to 150,000 yuan. A careful study of the history of Xiaomi's fortune shows that Xiaomi's mobile phones achieved market breakthroughs mainly through high cost performance in the early and mid-term.

Xiaomi has a slogan before that the profit margin of hardware will never exceed 5%, and it hopes to gain profits through subsequent ecological services. Therefore, Xiaomi’s first model is very likely to be launched as a cost-effective economical model to attract more fans. Then, the full life cycle business model expansion (finance, insurance, software, ecological hardware, etc.) will be carried out through the subsequent ecology.

02High-level autonomous driving functions will become the core weapon of Xiaomi Auto. In addition to the fact that the recruitment this time is mainly for positions in the field of autonomous driving, Xiaomi's investment in autonomous driving has also not fallen behind. On June 3, Xiaomi participated in the US$190 million Series D investment of Zongmu Technology, a supplier of intelligent driving technology and products.

On June 8, Xiaomi, along with Hillhouse and Meituan, jointly led the investment in more than US$300 million in Series D financing for Hesai Technology, a leading lidar manufacturer. By directly cooperating with many autonomous driving R&D teams, Xiaomi has both brand additions and relatively mature and stable autonomous driving solutions to use.

03 Xiaomi is very likely to adopt a model where the R&D headquarters is in Beijing and the production and delivery location is separate from it. The work addresses shown in this recruitment information are all in Haidian District, Beijing, which has been interpreted by the industry as "Xiaomi Automobile R&D Center Headquarters is about to settle in Beijing." At present, various automobile companies and high-tech companies new to the automobile industry have an increasingly strong demand for talents.

Having the R&D headquarters in Beijing will help Xiaomi quickly form a core team of car manufacturing talents. In the future, Xiaomi will recruit a group of engineers with know-how in car development from both new and traditional car-making forces to supplement its car-making genes. 04The possibility of OEM for Xiaomi’s first model is extremely high.

Recently, there has been news that BYD and Great Wall are OEMs for Xiaomi. Xiaomi itself is not good at manufacturing-related businesses, but is better at user experience and product development. The DNA of Xiaomi's core team is to make operating systems and imitate Apple's supply chain to find OEMs. Xiaomi is already familiar with this model. Among the many car-making forces.

BYD has mature mobile phone OEM experience and has cooperated with Xiaomi for many years. At the same time, BYD's experience in cooperating with Daimler on the Denza brand and Toyota on pure electric vehicles will bring more convenience to Xiaomi's car manufacturing OEM business. The high degree of vertical integration of BYD's supply chain is its biggest advantage, and its cooperation with Xiaomi.

BYD can directly provide new energy, electricity, electricity and other related core components, and has inherent advantages in controlling vehicle manufacturing costs. Even Xiaomi may directly use BYD's existing pure electric vehicle platform to speed up car manufacturing. 05 With its vast circle of friends, Xiaomi builds a new intelligent ecosystem through car manufacturing.

This is the key to Xiaomi’s success. As many big names in the domestic automobile industry said in recent interviews, Xiaomi entered the market too late and it will be difficult to surpass the leading companies. However, Xiaomi is very likely to independently master the core capabilities of smart cars through independent definition and design of the entire vehicle software architecture, and at the same time, based on the mastery of the above capabilities.

Open up the ecological chain of its other products, and form alliances with many Internet companies to form an intelligent ecological experience integrating people, cars, mobile phones and smart homes.