On September 7, 2026, Xiaomi officially launched its three extended-range SUVs: the Pengcheng N70 Pro, N70 Max, and N90 Max. The N70 starts at 209,900 yuan, while the N90 Max is priced at 269,900 yuan.
At the launch event, Lei Jun emphasized repeatedly that different new energy routes have their own merits, and that extended-range vehicles hold significant potential. However, contrasting sharply with such ambition, the extended-range vehicle market is currently undergoing an unprecedented retreat. According to data from the China Passenger Car Association, retail sales of domestic extended-range passenger vehicles in the first half of 2026 totaled just 439,000 units, down 19.4% year-on-year. More notably, amid the continued rise in new energy sales, extended-range is the only one of the three major new energy routes to see declines in both wholesale and retail figures. In June alone, wholesale volume was just 94,000 units, a year-on-year plunge of 25.2%, marking the largest single-month drop in five years.
Why is Lei Jun betting on 'winning over' the 'old boys'?
Amid the shrinking market, former extended-range champion Li Auto is pivoting to pure electric, AITO is facing generational transition pains, and most players are shifting strategy. Yet Lei Jun has charged in high-profile, championing the slogan that "extended-range vehicles hold great promise." In my view, Xiaomi is targeting a group of people most easily persuaded by family and responsibility, a demographic best described by a trending online phrase: "winning over the old boys." The colloquial term refers to pleasing middle-aged men born in the 1980s and 1990s who have financial stability and strong family needs. By precisely addressing their pain points—family duty, saving face, and essential travel needs—Xiaomi aims to achieve commercial monetization. This is the essence of its pursuit of a second growth curve. After winning over younger consumers, Lei Jun is now setting his sights on pleasing this demographic.
The 'golden age' of extended-range vehicles has ended
As mentioned, the extended-range market is facing turbulence. At the product level, among 83 extended-range models on sale, only the AITO M7 achieved average monthly retail sales exceeding 5,000 units in the first half of the year. Only 14 extended-range models surpassed cumulative retail sales of 10,000 units. More than 80 models are competing for shares of a shrinking market, a stark contrast between expanding product numbers and a declining overall market. In my analysis, three factors are accelerating the marginalization of extended-range vehicles.
The first: Policy incentives are fading. Starting January 1, 2026, the purchase tax exemption for new energy vehicles was adjusted to a 50% reduction, with a maximum tax cut of 15,000 yuan per vehicle. Meanwhile, the Ministry of Industry and Information Technology raised the threshold for pure electric range of plug-in hybrid (including extended-range) passenger vehicles to no less than 100 kilometers (WLTC cycle), removing many low-range extended-range models from the exemption list. Additionally, the vehicle and vessel tax exemption will be cancelled from January 1, 2027. These combined policy moves have directly raised the total cost of owning an extended-range vehicle.
The second: Pure electric technology is proving dominant. As of end-June 2026, the total number of charging infrastructure units nationwide reached 23.057 million, with public charging facilities exceeding 5 million. 800V high-voltage fast charging has been introduced into models priced at just over 100,000 yuan, and mainstream pure electric vehicles now boast ranges exceeding 600 kilometers. Notably, CATL's third-generation Shenxing super-fast charging battery can charge from 10% to 80% in just 3 minutes and 44 seconds. As "charging anxiety" gradually dissipates, the core narrative of "fuel or electric" for extended-range vehicles is crumbling.
The third: Plug-in hybrids are undercutting on cost-effectiveness. The double energy conversion of "fuel-to-electricity-to-kinetic energy" in extended-range systems is inherently less physically efficient than direct drive in plug-in hybrids. Mainstream mid-to-large extended-range SUVs consume 7-10L/100km when the battery is depleted, far higher than the 4-5.5L/100km of comparable plug-in hybrids. With the same "fuel or electric" capability, plug-in hybrids are eating into the extended-range market from below, given their superior highway fuel efficiency and lower maintenance costs.
Based on these three factors, extended-range vehicles are retreating from their former status as the "optimal solution" to merely a "supplementary option for specific scenarios."
Why is Lei Jun insisting on 'pleasing the old boys'?
Since the extended-range market has become a red ocean, what is Xiaomi's logic for entering against the tide while the industry retreats collectively? First, sales pressure is the biggest driver. At the start of 2026, Lei Jun set a delivery target of 550,000 units. Although Xiaomi Auto delivered over 30,000 units in August, cumulative deliveries from January to August reached approximately 246,000 units, achieving only 44.7% of the target. Production capacity for the pure electric SU7 and YU7 is largely maxed out, making extended-range the only incremental entry point to rapidly boost volume.
Second, precise targeting of middle-aged family users. The Pengcheng product definition is highly focused. The N70 is a mid-to-large five-seat SUV starting at 209,900 yuan, while the N90 is a large seven-seat flagship SUV starting at 269,900 yuan. The user group Lei Jun is targeting will not pay for "0-100 km/h acceleration," but they will pay for "a hassle-free experience for the whole family." For them, the "no range anxiety on long trips with fuel" feature of extended-range is not a technical specification but an essential need. The commercial logic of "pleasing the old boys" lies here—precisely catering to the soft spot of middle-aged men: family responsibility. Imagine not wanting your wife and kids to queue up for charging at highway service areas, or not wanting your car to break down halfway during the Spring Festival trip home. That is why you need a vehicle that can run on both fuel and electricity. This appeal is more compelling than any spec sheet. Lei Jun himself put it bluntly: "There is no absolute superiority or inferiority between extended-range and pure electric technical routes, only differences in product experience."
Third, the "large-battery extended-range" approach aims to redefine the experience. The Pengcheng series comes standard with a 76kWh ternary lithium battery. The N70 Max offers a CLTC pure electric range of up to 505 kilometers, while the N90 Max reaches 464 kilometers, both setting new industry records for extended-range models. Lei Jun's logic is clear: use it as a pure electric car for daily commuting with weekly charging, and rely on fuel for long trips, with the N90 Max achieving a combined range of 1,705 kilometers. The depleted-battery fuel consumption is capped at 6.26L/100km, aiming to solve the chronic problem of extended-range vehicles being "a dragon with charge, a worm without."
Who can a 300,000-yuan price point actually win over?
As one of Xiaomi's core weapons, cost-effectiveness remains a key advantage of the Pengcheng series. The N70, starting at just over 200,000 yuan, is expected to become a top-three seller in its segment. Similarly, as a 9-series SUV, the N90 Max is priced nearly 200,000 yuan lower than the entry-level versions of the Li Auto L9 and AITO M9, and will also compete with models like the Xpeng GX and Leapmotor D19. Based on this, Goldman Sachs predicts in a research report that Pengcheng series deliveries could reach 110,000 units in 2026.
But cost-effectiveness is not a panacea. On the competitive front, the 400,000-yuan segment is firmly held by the Li Auto L9 and AITO M9, both of which have cumulative deliveries exceeding 300,000 units and have established strong user perceptions of family luxury and advanced driving assistance. In the 300,000-yuan segment, the Leapmotor D19 extended-range version is selling nearly 5,000 units per month, and the Xpeng GX reached 4,762 units. Xiaomi faces a red ocean marked by both head-brand monopoly and mid-tier brand positioning. Grabbing users from these brands is another instance of "pulling teeth from a tiger's mouth."
At the product level, the Pengcheng's range extender comes from Dongan Power (co-developed by Xiaomi, with maximum power of 112kW), and the battery is supplied by CALB. Compared to the first-tier suppliers like CATL used in the SU7 era, the intent to cut costs is evident. The deeper issue lies in brand perception. The SU7 made its name with the clear label of "a car for drivers," but the Pengcheng's identity is still undefined. Large space, long range, and flexible cabin configurations are all claims already used by competitors. The transformation from "youthful performance" to "family-oriented stability" is about much more than just swapping product lines.
As a seasoned entrepreneur, Lei Jun is well aware he is swimming against the current. Choosing to launch the Pengcheng amid consecutive declines in the extended-range market, while prominently displaying the slogan "extended-range vehicles hold great promise," is itself a declaration. But the underlying logic of this strategy deserves scrutiny: Is Xiaomi entering the extended-range market because it sees an opportunity others have missed, or is it being dragged into today's predicament by a strategic decision made two years ago? For Xiaomi, the development of the extended-range project likely began two years ago or even earlier, when the extended-range market was still booming. In other words, today's "counter-trend" move may simply be the "inertia" of a decision made two years ago.
Continuous advancements in pure electric technology, increasingly comprehensive charging infrastructure, and the relentless cost-effectiveness of plug-in hybrids are fundamentally eroding the survival logic of extended-range vehicles. Lei Jun may be able to delay this trend with "large-battery extended-range," but he cannot reverse it. Returning to the opening question: What makes Lei Jun believe he can still "please these old boys"? In my view, Lei Jun does not need to "please" everyone. He only needs the middle-aged men who still believe "fuel or electric" is the optimal solution and happen to still trust Xiaomi. The Chinese auto market is large enough that even if the extended-range share shrinks from 7% to 5%, it remains a market of millions of vehicles annually. Lei Jun does not need to reverse the trend; he simply needs to carve out a large enough slice of cake within the cracks of the trend. That's all.