Chinese electric vehicle maker Xiaomi has received 289,000 pre-orders for its first sport utility vehicles within an hour of launching, in what the company says was a "miraculous" moment for the industry.
The thousands of pre-orders were for the Beijing-based tech giant's five-seater YU7, priced from 253,500 yuan ($54,000).
Xiaomi, sometimes referred to as China's Apple, is the world's second-largest smartphone manufacturer.
Founder and chief executive of the electronics-turned-car company, Lei Jun, said he was astonished by the reaction from customers.
"My goodness, in just 2 minutes, we received 196,000 paid pre-orders and 128,000 lock-in orders," Mr Lei said in a video distributed after the vehicle's launch.
"We may be witnessing a miracle in China's automotive industry."
After the launch, Xiaomi's Hong Kong-listed shares soared 8 per cent at one point before pulling back slightly but ending at a record high.
The YU7 is Xiaomi's second vehicle and one that undercuts Tesla's Model Y in price by nearly 4 per cent.
The Model Y is China's best-selling SUV and starts at 263,500 yuan ($56,000).
Marina Zhang, a China expert at the University of Technology Sydney, said Xiaomi's move into electric vehicles was backed by strong government support.
"In 2021, Xiaomi announced a $US10 billion investment over a decade to establish itself in the EV sector," she said.
"A key factor behind this was Beijing's push to make China a global leader in EVs, with local authorities providing incentives, land, and policy support."
Shi, a 26-year-old financial consultant and Tesla owner who wanted to only be identified by his surname, said he was considering buying a YU7 for his father.
"At this price, it's just really reasonable — it's totally in the same range as Model Y," he said.
"Two weeks ago, during the launch event, Lei Jun said they were aiming straight at Tesla, and I think that's completely justified."
But Dr Zhang said while Xiaomi's entry into the EV market introduced more competition, it was "unlikely to pose an immediate major threat" to major players like Tesla and BYD.
"Its success hinges on production execution, software differentiation and international expansion," she said.
Fatal crash leaves some concerned
Xiaomi made its first foray into car making with its SU7 EV model last year as part of a broader industry push to boost domestic consumption.
But initial enthusiasm for intelligent driving features in such vehicles was tempered by the fatal crash of a SU7 sedan in March.
The vehicle had been in assisted driving mode just before it crashed, killing three students.
The incident sparked widespread concern over autonomous driving technology and vehicle safety.
Xiaomi said at the time that initial information showed the car was in the "navigate on autopilot" intelligent-assisted driving mode before the accident and was moving at 116 kilometres per hour.
In a rundown of the data submitted to local police posted on a company Weibo account, Xiaomi said the autopilot system had issued a risk warning of obstacles ahead.
A driver inside the car took over and tried to slow it down but then collided with a cement pole at a speed of 97kph.
ABC/wires
