Lei Jun: The cost of the new‑generation Xiaomi (小米) SU7 has increased significantly, and prices will definitely rise

Price warning up front

It has been reported by IT之家 that Xiaomi (小米) founder and CEO Lei Jun (雷军) told staff the new‑generation SU7 will “definitely” be priced higher than the outgoing model. Short answer: costs have risen and the company is preparing customers for a premium. Why the confidence? Lei says the upgrade in safety, driving dynamics, intelligent features and luxury justify the move.

Delivery track record and company tone

Lei Jun framed the decision against two years of rapid progress. He noted Xiaomi Auto has delivered more than 600,000 vehicles to date, with some 380,000 of those being the original SU7 — numbers he called “unimaginable” when the car was launched. It has been reported that Lei described Xiaomi’s approach to carmaking as a marathon: calmer, more deliberate and focused on building “cars that stand the test of time.”

What’s driving costs

According to IT之家, the new SU7 will come standard with lidar, 700 TOPS driving compute, 4D millimetre‑wave radar and an end‑to‑end Xiaomi HAD assisted driving system — upgrades that raise component and development costs. Pre‑sale pricing has been listed at ¥229,900–¥309,900; Lei Jun’s public confirmation signals those figures are likely to move upward when final pricing is announced. Will buyers accept a higher entry point for stronger ADAS and luxury? Xiaomi is betting they will.

Broader context

This price push comes amid broader industry pressures — global supply‑chain tensions, rising component costs and tighter Western export controls on advanced semiconductors have added strain to EV makers in China. It has been reported that Xiaomi’s answer is to trade a lower margin for a higher‑spec product and to sell on perceived value rather than price alone. The new SU7, Lei says, is Xiaomi’s latest “answer” to its five‑year goal of building a safe, desirable dream car.