Background and Theme of the Speech

Date:Evening of July 19th 2024

Theme: “Courage”

Event: Lei Jun’s 2024 Annual Speech and Xiaomi New Product Launch Conference

Lei Jun’s fifth annual speech, lasting 3 hours, focused on the story of Xiaomi’s automotive venture.

Origin of Xiaomi’s Automotive Venture

Cause: In January 2021, Xiaomi was sanctioned by the US, leading the board to decide on automotive manufacturing due to employee employment concerns.

Research Process: A 6-person research team spent over 70 days visiting more than 10 cities, interviewing over 200 people, and holding 4 executive meetings.

Key Support: Li Bin and He Xiaopeng strongly advised Lei Jun to enter the automotive industry, and Lei Jun ultimately decided to lead the effort personally.

Decision-making and Challenges in Automotive Manufacturing

Decision Process: After intense board discussions, the decision was made to support the venture, with Lei Jun leading and fully funding it with USD 10 billion over ten years.

Internal Challenges: Xiaomi was in the midst of a transition, facing executive departures and market doubts about entering the industry late.

Courage and Determination: Facing immense pressure, Lei Jun decided to “march forward despite thousands of people opposing me,” throwing himself wholeheartedly into automotive manufacturing.

Team Building and R&D

Team Formation: Within half a year, a team of over 1,000 people was formed, growing to over 7,000 within three years, including 1,000 technical experts.

R&D Strategy: Starting with core technology, Xiaomi opted against acquisitions or outsourcing, investing heavily and building its own battery pack factory.

Product Positioning: Aiming to build a car that Xiaomi engineers would want to buy, the decision was made to start with pure electric sedans, tackling the more difficult route.

Facing Difficulties and Achieving Breakthroughs

R&D During the Pandemic: With the outbreak of COVID-19 in Shanghai, engineers worked from home to maintain project progress.

Crucial Meeting: After the Spring Festival, a 21-day marathon-style meeting was held, fostering consensus, respecting industry norms, and adhering to the principle of “upholding the orthodox and achieving the extraordinary.”

Technical Breakthroughs: Significant resources were invested in R&D, including motor development, battery pack technology, and intelligent driving systems.

Launch of Xiaomi SU7 and Market Performance

Launch and Reception: On March 28th, the SU7 was launched, generating overwhelming interest and becoming an instant best-seller.

Market Doubts: Prior to its launch, the SU7 faced skepticism and criticism, with doubts about Xiaomi’s ability to succeed.

Pricing and Sales: Ultimately priced at RMB 215,900, the SU7 received numerous pre-orders immediately after the launch conference, and its first-month sales performance was robust.

Lei Jun’s Personal Journey and Insights

Driving Personally: To gain a deeper understanding of cars, Lei Jun relearned how to drive, test-driving over 170 vehicles and taking notes amounting to over 200,000 words.

Racing Car Experience: Obtaining a racing license, Lei Jun encouraged his team to participate in racing training, enhancing their knowledge of cars.

Personal Involvement in Testing: Participating in winter, summer, and large-scale road tests, Lei Jun accumulated over 5,000 kilometers of testing.

Future Outlook for Xiaomi Automotive

Delivery Goals: With a guaranteed minimum delivery of 100,000 vehicles by the end of the year, striving for 120,000.

Long-term Vision: While Xiaomi Automotive has achieved an initial victory, the long march has just begun, aiming to become one of the top five automakers globally.

Ode to Courage: Emphasizing the importance of courage, Lei Jun hailed the unwavering determination in the face of fear as the greatest anthem of humanity.

Here’s the full transcript of Lei Jun’s 2024 keynote speech. Sharing it with you all!

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