Xiaomi SU7 Next Generation: Lei Jun Live Analysis of the True Cost Behind the Price Increase and Design Commitment

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Xiaomi SU7’s Next Generation: Lei Jun Addresses Pricing, Design, and Recent Controversies

After the next-generation Xiaomi SU7 officially launched and opened for pre-orders, Xiaomi Group’s Lei Jun engaged in an important live dialogue with Xiaomi’s EV Vice President and Head of Public Relations. In this interaction, they systematically addressed consumers’ most pressing concerns regarding price adjustments, product configuration, design philosophy, and recent public discourse hotspots.

The Reality of Price Increases: Cost Pressure and Configuration Innovation

In this update, the Xiaomi SU7 Standard and Pro versions saw a price increase of 14,000 yuan compared to the previous generation, while the Max version increased by 10,000 yuan. Facing market skepticism, Lei Jun candidly outlined the dual logic behind this decision.

Substantial product upgrades on the product side serve as the primary reason. The new-generation SU7 upgrades the Standard and Pro versions across the board to the 800V high-voltage silicon carbide platform, with the entire product line now standardly equipped with LiDAR sensors and complete autonomous driving hardware. These technological iterations are equivalent to a comprehensive overhaul of the “big three” in traditional combustion engine vehicles, with the value of these hardware improvements alone reaching tens of thousands of yuan.

The rapid surge in supply chain costs represents another real challenge. Automotive-grade memory chip prices continue to rise, with quarterly increases already reaching 40%-50%, and the industry predicts further increases this quarter, with some reports even suggesting potential increases of 70%. Memory costs alone will add thousands of yuan this year. Combined with rising pressure from basic raw material prices, the cost-side pressure is indeed substantial.

Lei Jun particularly emphasized that despite hopes for “official price reduction room” or “added configuration without additional cost,” the reality is: given the current high costs and substantially enhanced configurations, Xiaomi SU7 has no further capacity for price reductions or configuration increases.

Conservative Exterior, Thoroughly Revolutionary Interior

Regarding discussions about the new generation’s similar exterior appearance to its predecessor, Lei Jun explained the strategic considerations behind this seemingly conservative choice.

Although visual adjustments are limited, this redesign’s core upgrades are entirely concentrated on “internal refinement”—from chassis and electric drive systems to electronic architecture, all have undergone complete reconstruction. Interior design has likewise been completely redesigned.

Xiaomi’s design leader added that there are indeed minor exterior adjustments. Since all models are now standard-equipped with the new rectangular 4D millimeter-wave radar positioned centrally on the front grille, the front panel’s black area underwent corresponding modifications. The continuous horizontal grille in the center of the original SU7 needed to give way to the new radar’s installation requirements.

The choice to maintain overall design style rather than undertake major overhaul carries two profound meanings: First, internal research and external feedback both indicate that consumers appreciate SU7’s design aesthetics, maintaining this distinctive feature aligns with market expectations; Second, consideration for existing vehicle owners—if exterior appearance changed drastically shortly after new models launch, existing users would naturally feel uncomfortable, which directly impacts used car residual values. SU7’s residual value performance has been consistently excellent; hasty design changes would instead damage this advantage.

Lei Jun acknowledged that choosing “not to change” requires substantial courage and confidence in the current market environment. However, he believes that even now, SU7’s design remains competitive and continues to be welcomed by consumers.

The “Serene Elegance” of Interior Design

Regarding criticism that the new generation’s all-black interior appears “outdated,” Lei Jun responded positively.

Through extensive user research, the team found that many users still prefer black interiors. To prevent pure black from appearing oppressive and monotonous, the design incorporates gray stitch contrasts and filled decorative details, achieving a visual effect that is “composed yet full of vitality”—this approach demonstrates remarkable texture and elegance in real-world vehicle experience.

Additionally, color schemes beyond black are available. However, Lei Jun emphasized that upon entering the black interior cabin, consumers will experience a unique sense of sophistication and luxurious comfort.

The Reasoning Behind the Three to Four-Month Early Release

Why choose to announce the new generation information relatively early? Lei Jun’s answer focuses on the seriousness of purchasing decisions. Vehicle purchases are not impulse purchases; providing sufficient advance notice allows consumers adequate time to experience products and make rational judgments after careful deliberation.

Meanwhile, as SU7 has become an established “sales champion,” this first update requires even greater care and thoroughness. Notifying existing users and potential buyers early, allowing the market to understand the product evolution roadmap clearly, represents the core consideration behind Lei Jun’s team’s decision to release information 3-4 months in advance.

Clarification on Attitude Toward Recent KOL Controversy

Regarding recent disputes with certain media collaborators, Lei Jun expressed Xiaomi’s principled stance.

Some believed the company’s penalties on internal employees were too harsh, even fearing that Xiaomi was being held hostage by extreme public opinion. Lei Jun clarified that this decision originated from Xiaomi’s comprehensive company-wide investigation and management’s careful deliberation.

The key point is: it wasn’t because that KOL criticized Xiaomi or offended fans—Xiaomi has faced countless criticisms over 16 years; this is industry norm. The real bottom line is: that voicebelittled, slandered, and even cursed at Xiaomi users. As an enterprise, we cannot maintain relationships with partners who denigrate users. Protecting user dignity is a principle Xiaomi cannot compromise on. The public relations team faced severe criticism and punishment for inadequate work on this matter.

Lei Jun simultaneously called upon Xiaomi fans to grant opportunities for reflection.

The Origins and Clarification of the “Marketing Wizard” Label

Where does the “Marketing Wizard” label originate? Lei Jun traces it to a 2013-2014 entertainment program. At that time, he competed with a certain entrepreneur, and the opposing team privately commented: “Don’t compete with Lei Jun in marketing; he can sell hundreds of thousands of phones with a single statement.”

This comment was subsequently magnified endlessly. However, Lei Jun pointed out the problem: can an enterprise’s success be solely supported by one person’s statements?

What was originally hyperbolic language from an entertainment program was subsequently deliberately appropriated as a tool for denigration by competitors and media. On the surface, “Marketing Wizard” seems like praise, but Lei Jun admits experiencing physiological aversion upon hearing the term “marketing”—because this neutral concept has been deliberately stigmatized.

The truth is: competitors attempted to attribute all of Xiaomi’s product success solely to “marketing” rather than “product excellence,” a narrative that confused public discourse and obstructed public understanding of the truth. Consider this: how could SU7’s sales success be achieved through marketing alone without superior products?

Facing coordinated attacks on social media recently, Lei Jun previously remained unconcerned, maintaining an attitude of “time will tell.” However, after experiencing 8-9 months of intensive public discourse warfare, he began confronting the intensity of these attacks.

Nevertheless, his conviction remains unchanged: truth will naturally reveal itself in daylight, and people will make fair judgments. He told his team that even if explanations cannot convince everyone, “I don’t need to convince robots, because there’s only a motherboard behind robots.”

Over 16 years of Xiaomi’s journey, numerous people have personally witnessed this enterprise’s integrity. While mistakes are inevitable, correcting errors is a fundamental principle, and open communication is an enterprise characteristic. Therefore, Lei Jun firmly believes that true fans, users, and car owners will gradually deepen their understanding and trust in Xiaomi through 16 years of product practice and enterprise history.

About That “Conference Cup” and Its 16 Discussions

Xiaomi’s public relations leader reviewed all meeting records to respond to the claim of “holding 15 meetings just for one cup.” After tallying, formal meeting records involving this cup number at least 16, not merely 15.

What needs clarification is: it was not 15 meetings discussing only one cup, but rather this cup being discussed as one item among multiple product topics across at least 16 meetings.

Why require so many discussions? One example is the final product: utilizing two colors, employing “masking spray paint” technology, including color gradient effects on the waistline, with the logo section hand-applied following painting. The necessity for such technological complexity exists solely to allow users to experience unique texture and embossed sensation upon touch.

Many existing car owners already possess this cup and can personally verify the unique sensation of its touch experience. Precisely this meticulous attention to detail requires multiple meeting discussions regarding seemingly minor elements. These over ten iterations aim to elevate quality and materials to the highest achievable standards.

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