Xiaomi, the Chinese smartphone giant, has unveiled its first electric vehicle (EV) and begun accepting orders. The standard SU7 model is priced at 215,900 yuan ($29,872; £23,663), with the Max version costing 299,900 yuan, CEO Lei Jun confirmed. Over 50,000 orders were received within the first 27 minutes of sales.

This move into the electric car market places Xiaomi in competition with industry leaders like Tesla and BYD. The SU7, boasting a minimum range of 700km (435 miles), surpasses the Tesla Model 3’s range. It aims to leverage Xiaomi’s existing ecosystem by sharing an operating system with phones, laptops, and other devices.

Xiaomi, holding the third-largest share of the global smartphone market, sees its foray into electric vehicles as a significant investment, with plans to invest $10 billion (£7.9bn) over the next decade. The company’s confidence in the Chinese EV market contrasts with Apple’s recent withdrawal from EV plans.

The Chinese EV market is established, with strong battery supply chains and a growing charging network. However, competition is intensifying, with price reductions from major players like Tesla and BYD. Xiaomi’s entry into the automotive sector comes amidst scrutiny from authorities aiming to manage the influx of new players.

Meanwhile, global governments are addressing concerns about imported EVs. Beijing has initiated dispute settlement proceedings against the US, alleging “discriminatory subsidies.” Additionally, the European Union is investigating whether Chinese government subsidies have facilitated the undercutting of European-made EV models.