Xiaomi SU7 Ultra takes on Porsche in China’s premium market

In China, home-grown brands are now consistently outperforming European manufacturers in the mid-market segments. Where Volkswagen could once boast of being the country’s best-selling brand, the balance has shifted. Chinese carmakers have moved to reclaim what they see as their rightful share of the market. Among them is Xiaomi, which is aiming to break into the premium segment, taking on European marques such as Porsche that have led this tier for years.

Xiaomi SU7 Ultra targets the premium segment in China

Xiaomi’s plan is to win over buyers who place a premium on exclusivity, performance and personalisation-qualities typically associated with luxury brands. The SU7 Ultra is often compared with the Porsche Taycan, despite being priced at roughly half as much: 529 900 yuan versus 918 000 yuan, equivalent to 110.4 thousand euros.

SU7 Ultra personalisation package and pricing

Last month, the Chinese company announced a service that will let customers tailor the SU7 Ultra-ranging from paintwork to special trim options-for around 100 000 yuan (approximately 12 thousand euros at the current exchange rate). In China, the model starts at 529 900 yuan (63.7 thousand euros).

It is worth noting that Porsche also offers its own customisation programme, Exclusive Manufaktur, which is said to generate around 5.6 billion euros in sales and 2.5 billion euros in profit. Beyond the German brand, Lamborghini and Bentley are also well known for extensive personalisation options.

Porsche’s challenges in China

Porsche is currently dealing with significant headwinds in the Chinese market, where sales of its electric models, including the Taycan, have shown signs of weakening. The reasons include intense domestic competition and the rapid pace of progress among local electric vehicles, which are often more technologically advanced and sold at more accessible prices.

Brands such as Xiaomi, BYD and NIO are increasingly appealing to younger consumers who pay close attention to the sector’s technological advances. Their line-ups already include competitively priced electric models, with levels of customisation that are beginning to resemble European luxury.

This new landscape is forcing Porsche to rethink its approach in the country and to strengthen services such as personalisation and connectivity.