Chinese carmakers are already beating their Western rivals when it comes to winning over the country’s middle-class drivers. Now they are targeting rich customers looking to add a little extra to their cars. Xiaomi last month started a service that will allow buyers to customize their CNY529,900 SU7 Ultra racer electric sedans with select trim and paint jobs – adding at least CNY100,000 to the sticker price. A major smartphone designer that is making quick inroads with its electric vehicles (EV), Xiaomi is competing for consumers who may otherwise opt for an individualized Porsche or another premium European brand. The German luxury carmaker is also pushing to expand sales of bespoke 911 sports cars in China as it gets squeezed on EVs by local brands.
Porsche and its Western peers long enjoyed strong growth in China, with renowned precision engineering of combustion-engine vehicles. But in recent years, Xiaomi, BYD, Nio and other local manufacturers have narrowed the gap with cutting-edge software and battery technology. Having cornered the market for affordable EVs, they are now targeting wealthier consumers. While Xiaomi’s SU7 Ultra sells for less than the CNY918,000 Porsche Taycan, the Chinese model bears an uncanny resemblance to the German company’s flagship electric model. SU7 Ultra buyers who want to customize their vehicles are required to commit at least CNY100,000 to their personalized touches, which include 24-carat gold bonnet badges and forged wheel hubs in four colors. The service also extends to the CNY329,900 YU7 Max, a SUV that has been compared with Ferrari’s Purosangue.
By adding pricey extras for car buyers, Xiaomi is tapping a lucrative trend. The likes of Ferrari, Bentley Motors and Lamborghini have for years offered their super-rich customers the chance to spend extra cash to make their cars unique. Porsche says more than 90% of 911 buyers choose at least one option from its personalization business, Exclusive Manufaktur, which can add tens of thousands of dollars to the purchase cost. Unique paint jobs are among the most popular: customers can spend around USD13,000 to select from the brand’s library of more than 190 colors, or spend more than USD30,000 to match their new car to their favorite lipstick shade, baby blanket or sports team jersey.
“Our customers don’t want off-the-shelf products,” Porsche Production Manager Albrecht Reimold told reporters at the brand’s Leipzig factory last month. “They want individualized interiors and, in some cases, exteriors that meet their needs.” Porsche plans to expand the customization options and bolster its in-car software and features in China after seeing volumes plummet there. It’s clear that Xiaomi is encroaching on the territory of Western premium brands, the South China Morning Post reports.
