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<Research>M Stanley: XIAOMI's Price Hike for SU7 During Peers' Price Cut Spree Can Enhance Brand Image
Recommend 34 Positive 55 Negative 18 |
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Morgan Stanley noted in a report that according to XIAOMI-W (01810.HK), the company will remove the new buyer subsidy of RMB8,000 to RMB14,000 per vehicle from 1 May. This will effectively raise the retail price of the SU7 from RMB215,900 - RMB299,900 to RMB223,900 - RMB307,900. The broker believed that the price increase would have a positive impact on Xiaomi Automobile's profit margins and enhance its brand value. In the fiercely competitive Chinese EV market, most of its peers are aggressively cutting prices to grab market share. In contrast, XIAOMI is raising its average selling price and has a larger backlog of orders than most of its peers. If XIAOMI's differentiated pricing strategy can be sustained, it could create brand value and enjoy a premium for high-end products, according to the broker. Morgan Stanley gave XIAOMI a target price of $20 and an Overweight rating. AAStocks Financial News |
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