Xiaomi, the Chinese smartphone manufacturer, saw its shares surge by up to 16% on Tuesday, marking the first trading day following the launch of its SU7 electric car ahead of the Easter holiday. The Hong Kong-listed shares of Xiaomi reached 17.34 Hong Kong dollars intraday, marking their highest level since January 2022.

In a demonstration of the intense competition in China’s electric car market, Xiaomi announced late Thursday that the SU7 would be priced approximately $4,000 lower than Tesla’s Model 3, while boasting a longer driving range. As of Tuesday morning, Xiaomi’s online store indicated wait times of at least 5 months for the basic version of the SU7, with the company reporting orders for over 50,000 cars within 27 minutes of sales commencing at 10 p.m. Beijing time on Thursday.

Meanwhile, Chinese EV startups Xpeng and Nio unveiled car purchase subsidies on Monday, offering 20,000 yuan ($2,800) and 10,000 yuan respectively. Nio attributed the promotional deal to Chinese government policies aimed at stimulating consumption through trade-ins.

These price adjustments coincide with a slowdown in the growth of new energy vehicles in the world’s largest auto market. The China Passenger Car Association reported that battery and hybrid-powered passenger cars now represent more than one-third of new cars sold in China.

Li Auto delivered 28,984 cars in March, showing an increase from February but falling short of recent delivery figures. Nio and Xpeng also revised their first-quarter forecasts downward by several thousand cars each, with Nio delivering 11,866 cars in March and Xpeng delivering 9,026 vehicles.

In contrast, Huawei’s new energy car brand Aito reported delivering 31,727 cars in March. BYD, the industry leader, sold 139,902 battery-powered passenger cars and 161,729 hybrid vehicles in March, marking a nearly 14% increase in total passenger car sales compared to the previous year.

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