Don’t be happy about the price of Xiaomi SU7: in Europe it will be much more expensive

He Xiaomi SU7, the first electric car from the popular smartphone and home device maker, is now available in China at a very attractive price. It is available for $29,875 or €27,740 in the case of the most economical standard version and for 41,500 dollars or 38,500 euros in the case of the most powerful version called Max. These are, of course, amazing numbers. In fact, the brand’s electric car is cheaper than the Tesla Model 3.

Now: its price in Europe could be completely different – i.e. more expensive–. This shouldn’t really come as a surprise since the same thing has been happening with the company’s mobile phones for several years now.

For example, Xiaomi 14 Ultra went on sale in China at a price of 6,449 yuan, equivalent to 835 euros. In Spain, it sells for about 1,500 euros (that is, 680 euros more than it would cost in a currency exchange). And this is what can also be applied to Xiaomi SU7. This is due to a number of reasons that go beyond the company’s strategy to obtain greater benefits.

First of all, it must be borne in mind that the European Union imposes on manufacturers who operate outside the territory and import goods range of tariffswhich will inevitably lead to an increase in the selling price of the car.

The European Union is also exploring the possibility of introducing some special tariffs for Chinese manufacturers electric vehicles that import their cars to Europe. In accordance with ReutersRegulators suspect that the amount of aid and subsidies the Chinese government is providing to these companies is allowing manufacturers to import their electric vehicles globally and sell them at a more competitive price than their competitors, thereby harming the European auto industry. Exclusive tariffs for Chinese companies could end unfair competition, but if they finally go into effect, they will also They will make the price of Xiaomi SU7 even higher.

Taxes, import costs and more

In addition to tariffs, it is necessary to take into account taxes that manufacturers must include in the price of their electric vehicles. In countries like Spain, VAT on cars is 21%, while in China it is 13%. Assuming that the price announced for the Chinese market includes the aforementioned taxes, the car will cost approximately €29,700 after taxes in Europe. Another about 2000 euros.

On the other hand, we must also take into account transportation and logistics costs that the manufacturer must commit to bringing its cars from China to the European continent, as well as the distribution model that Xiaomi will carry out for its SU7 once it arrives in Europe.

Most Chinese manufacturers based in Spain prefer to distribute their cars through dealers, forcing them to raise costs to make a profit. In some cases, like Tesla, they rely on their own distribution network to help them maintain tighter prices, but it’s unclear whether Xiaomi will choose this second option or go the same route as the others.

Xiaomi SU7 may follow the example of Tesla Model 3.

We can observe the difference in price between a car that is sold (and produced) in China and a car imported to Spain in other models. One striking example is the Tesla Model 3. In our country it is available for 39,940 euros, while in China the same version can be purchased for about 250,000 yuan or about 31,526 euros. That is, the difference is 8,114 euros. And let’s not forget that Tesla has its own distribution model.

Therefore, taking into account all the factors mentioned, it will not be a surprise if the simplest Xiaomi SU7 appears on the European market at a price between 35,000 and 40,000 euros. A very interesting figure compared to the benefits promised by the brand, but certainly less surprising than the one announced in China.