Xiaomi founder, chairman and CEO Lei Jun said China’s auto industry is moving
upscale but the domestic high-end market is currently in a product supply gap
and the luxury segment is being restructured. He said China achieved domestic
substitution for most components 10–20 years ago and that remaining differences
are matters of design and manufacturing quality. In mid-to-high-end vehicles,
in-vehicle chips, vehicle operating systems and carbon-ceramic brake discs are
entering a domestic-substitution phase. Lei expects this transition will take
5–10 years and said companies like Xiaomi must act as lead suppliers to help
build a domestic high-end parts ecosystem. He added that while China’s auto
sector is highly competitive with mature low- and mid-end offerings, quality
supply for mid- and high-end products is lacking and the industry must develop
Distinctive mid-to-ultra-high-end models.
