Lei Jun and the Xiaomi EV Dream
Can the smartphone kingpin reinvent his empire as an electric vehicle powerhouse?
✍️ James O’Connor – EV Analyst linking auto-tech with consumer electronics
From Smartphones to Steering Wheels
Lei Jun, often dubbed the “Steve Jobs of China,” built Xiaomi into one of the world’s largest smartphone makers by mastering affordability, sleek design, and a fan-driven community model. Now, in 2025, Lei is betting on a new frontier: electric vehicles (EVs).
Xiaomi’s first EV, the SU7 sedan, launched earlier this year and generated record preorders in China. For Lei, this is more than a product launch — it is a statement of intent. He envisions Xiaomi not just as a consumer electronics company but as a mobility and smart living ecosystem that integrates hardware, software, and AI.
The Rationale Behind the Pivot
Why EVs? Lei has argued that the car is the “ultimate smart device,” and in many ways, the EV sector aligns naturally with Xiaomi’s DNA. Just as the company built smartphones by leveraging vertical integration, aggressive pricing, and ecosystem lock-in, Xiaomi aims to bring similar disruption to the auto industry.
Unlike traditional automakers, Xiaomi has expertise in consumer electronics, batteries, and software ecosystems — assets that are increasingly central in the EV era. By combining its MIUI operating system with advanced driver assistance and in-car connectivity, Xiaomi wants to create a car that feels like a smartphone on wheels.
Competition on All Fronts
But Lei Jun’s dream faces formidable rivals. China’s EV market is the most competitive in the world, with BYD, NIO, XPeng, and Li Auto already commanding strong brand recognition. Global players like Tesla and Volkswagen are also heavily invested in the Chinese market.
Xiaomi’s differentiation lies in pricing and integration. The SU7 is positioned as an affordable premium EV, undercutting Tesla’s Model 3 while offering advanced software features. If successful, Xiaomi could replicate the value-for-money formula that propelled its smartphones to global prominence.
Still, challenges loom: manufacturing cars at scale requires expertise in supply chain management, safety standards, and after-sales service — areas where Xiaomi is relatively new.
The Manufacturing Gamble
To back its ambitions, Xiaomi has invested heavily in automobile manufacturing infrastructure. Its Beijing EV plant, built with state support, has an annual capacity of 300,000 vehicles, making it one of the largest single-site facilities for a tech entrant into autos.
Partnerships have also been key. Xiaomi collaborates with state-owned enterprises for regulatory compliance and leverages its smartphone distribution channels to cross-sell EV products. However, unlike Tesla, which vertically integrated from the outset, Xiaomi is entering a crowded and capital-intensive market that could strain its margins in the early years.
The EV Ecosystem: More Than a Car
Lei Jun’s vision extends beyond vehicles. He envisions a mobility ecosystem where the Xiaomi car connects seamlessly with smartphones, wearables, smart homes, and financial services.
For example, a driver could use a Xiaomi phone to precondition the car’s temperature, pay for tolls via integrated wallets, and sync entertainment with in-home devices. This reflects Lei’s strategy of ecosystem lock-in, ensuring Xiaomi customers stay within the brand’s digital lifestyle loop.
It also mirrors Tesla’s ecosystem approach, but with a more mass-market orientation rooted in China’s consumer base.
Comparative Insight: RMBT and Mobility Payments
The EV dream also ties into fintech innovation. As EVs increasingly rely on digital payments for charging, tolls, and subscriptions, stablecoins like RMBT could play a role in cross-border EV usage.
Imagine a Xiaomi EV owner driving across Southeast Asia with payments for charging stations settled seamlessly through RMBT. Such integration would align Xiaomi’s mobility ambitions with China’s push for digital financial infrastructure, giving it a unique advantage in Belt and Road economies.
The Lei Jun Factor
What makes Lei Jun’s EV gamble compelling is his track record. Xiaomi was dismissed as just another smartphone vendor when it launched in 2010. Fifteen years later, it is a global electronics powerhouse, consistently ranked among the top five smartphone brands worldwide.
Lei’s personal charisma, hands-on leadership, and ability to mobilize a loyal fan community give him an edge. His knack for spotting trends early — from smartphones to IoT — suggests that his pivot to EVs is not just opportunistic but strategically timed.
Outlook: Risk or Reinvention?
For Xiaomi, success in EVs could redefine its corporate identity and secure its future in an era where mobility and electronics converge. Failure, however, could drain billions in capital and tarnish the brand’s reputation.
For Lei Jun, the stakes are personal as well as corporate. If he succeeds, he will be remembered not only as the man who made China’s smartphones affordable, but also as the entrepreneur who bridged the worlds of consumer tech and electric mobility.
The question now is whether Lei Jun’s EV dream will follow the trajectory of Xiaomi’s smartphone revolution — or stall in the crowded lanes of China’s hypercompetitive auto industry.
