Both Xiaomi and its founder, Lei Jun, hold a strong admiration for Apple. Known as “the Apple of China,” Xiaomi often incorporates Apple-like designs and principles into its products and marketing strategies. Lei Jun has openly cited Steve Jobs as a source of inspiration, attributing the 1984 book “Fire in the Valley” to igniting his entrepreneurial journey.

Thus, when Xiaomi announced its foray into the electric vehicle (EV) space in March 2021, mirroring Apple’s exploration into car manufacturing in 2014, it wasn’t entirely unexpected. Xiaomi pledged a substantial investment of $10 billion over a decade to develop “quality smart electric vehicles.”

However, recent reports indicate that Apple has scrapped its car plans, redirecting its personnel towards AI projects instead.

Lei Jun, often associated with the “Apple of China,” expressed his surprise at Apple’s decision in a Wednesday post on the Chinese social media platform Weibo. Despite Apple’s pivot, Lei emphasized Xiaomi’s strategic commitment to EVs, acknowledging the challenges ahead.

In December, Lei revealed that Xiaomi had allocated 3,400 engineers and 10 billion Chinese renminbi ($1.4 billion) towards its first prototype vehicle, a significantly higher investment compared to typical automakers’ new model endeavors.

Lei believes Xiaomi has a chance to penetrate the car market due to EVs blending traditional automotive features with consumer electronics. Xiaomi unveiled its inaugural EV, the SU7 electric sedan, in late December, showcasing it at the Mobile World Congress in Barcelona.

Xiaomi aims to commence domestic deliveries as early as the second quarter of the year. While the price remains undisclosed, Xiaomi targets the premium market, leveraging its experience in catering to over 20 million premium smartphone users.

Despite China’s rapid EV adoption, Xiaomi faces challenges entering a maturing market amidst intensifying price competition among established players like BYD and Li Auto.