Why Apple Failed to Build a Car While Xiaomi Delivered
In 2024, two tech giants made headlines in very different ways. Apple shut down its $10 billion car project after nearly ten years of planning. Meanwhile, Xiaomi, a smartphone brand, launched its first electric car, the SU7, and sold nearly 90,000 units in just 24 hours.
We watched in surprise. How did a phone company build a car so fast while Apple, with all its money and talent, couldn’t deliver even one?
This isn’t just about cars. It’s about focus, speed, and knowing what the market wants. We’ll investigate why Apple’s ambitious strategy didn’t work and how Xiaomi managed to achieve it. From leadership to product design, the differences are clear, and they offer big lessons for the tech world.
Let’s take a closer look at what happened and what it means.
Apple’s EV Dream Fades Away
Apple began experimenting with cars around 2014, which led to Project Titan. The project was shrouded in mystery, rumblings about self-driving vehicles without a steering wheel.
Apple spent big, over $10 billion, but the vision kept changing. They swung between dream EVs and pure autonomy, moving deadlines from 2025 to 2028. Executives came and went, and in February 2024, Apple officially canceled Project Titan.
In October, they even returned their California testing permit, proving the project was truly over. Over 600 staffers were reassigned or laid off. Apple shifted its focus to generative AI and CarPlay software instead.
Xiaomi’s Car Success Story
Meanwhile, Xiaomi was quietly building car-making capability. In 2021, founder Lei Jun said the company would invest ¥10 billion (about $1.6 billion) in electric vehicles over ten years. He even said it was his “last entrepreneurial project”.
In March 2024, Xiaomi unveiled the SU7 sedan. It sold nearly 90,000 units on the first day and delivered over 250,000 by mid-2025. The car’s blend of speed, tech, and value drew praise. Even Ford’s CEO praised Xiaomi’s achievement.
In June 2025, Xiaomi launched its YU7 SUV and received an impressive 289,000 orders within just one hour. That’s a higher order volume than what some countries generate over several months.
What Xiaomi Did Right: A Breakdown
Vision + Leadership
- Apple lacked stability. Its car efforts were secretive, with frequent strategic shifts.
- Xiaomi had Lei Jun front and center. He committed publicly and stayed hands-on, leading over 80 expert meetings.
Execution & Partnerships
- Apple focused too much on self-driving tech early. It never nailed down manufacturing.
- Xiaomi recruited veterans from BMW, Geely, and Magna Steyr and partnered with BAIC Group for mass production.
Product-Market Fit
- Apple aimed for full autonomy. That tech was still years away.
- Xiaomi has built a stylish, high-performance EV that people can buy now. The SU7 offers 0–100 km/h in about 5 seconds, and the Ultra hits 1.98 seconds.
Ecosystem Integration
- Apple never tied the envisioned car into its ecosystem clearly.
- Xiaomi integrated SU7 into MIUI, synced with phones and smart homes, a hit for “Mi Fan”.
Built-in Market Advantage
- Xiaomi entered China’s massive EV market, supported by government incentives and a well-developed charging infrastructure.
- Apple targeted the U.S. with fewer incentives and less infrastructure support.
The Industry Impact
These tales offer more than a national rivalry. They teach key lessons:
- Execution beats ambition. Bold ideas only matter if they become real.
- Home-lane advantage helps. Xiaomi capitalized on China’s EV environment.
- Ecosystem alignment wins. Tech companies should leverage existing users.
- Public commitment matters. Lei Jun made Xiaomi’s goals clear from day one.
Conclusion
Apple’s car project fizzled due to secrecy, indecision, and misaligned goals. Xiaomi succeeded through clarity, teamwork, and real-world focus. The result: one launched a product consumers wanted, and the other didn’t.
As Apple pivots to AI and phone-car integration tools, Xiaomi is already expanding, aiming to ship 350,000 cars in 2025 and eyeing overseas launches by 2027.
In the EV race, it’s not just who fantasizes, but who delivers. Xiaomi proved it could reach its goal successfully.
FAQS:
Apple’s car project fell apart due to constant strategy changes, frequent leadership turnover, and overly ambitious goals. They spent years on it but never made a real car.
Apple stopped the project because it was too hard and too expensive. They couldn’t finish the car, so they decided to focus on other tech like AI.
Yes, Xiaomi built a car called the SU7. It’s electric, fast, and smart. People liked it so much that it sold thousands of units in one day.
Disclaimer:
This content is for informational purposes only and not financial advice. Always conduct your research.