The vehicle is all but confirmed, as Xiaomi still keeps the juiciest details away from our eyes and ears, but the first Xiaomi Car, internally codenamed Modena, is making good progress behind the closed wheels of the Yizhuang factory.

Xiaomi has started building models whose role will be to serve as exhibition vehicles in the company’s stores. The factory has a target of 300 vehicles in December, with the output to increase slightly in January.

All models are supposed to help the Chinese tech giant continue the product line verification phase and build the necessary inventory for exhibition vehicles.

The company has reportedly encountered several production challenges, including in the manufacturing process, but engineers are working around the clock to address them before the mass production phase begins. A large OTA update has already been shipped, presumably to address bugs in the car’s software, though no specifics are available.

Xiaomi’s pilot production phase advances slowly as the company focuses exclusively on the stability side of the process. It’s not yet aiming for high volumes, trying to make sure everything runs properly before it starts mass production. The preparatory phases are common for new vehicle releases, but Xiaomi handles every step with extra care, mainly because it’s the company’s first vehicle. Xiaomi eventually plans to launch three models in the coming years, with a hybrid model codenamed Kunlun reportedly in the design phase.

Xiaomi is working on multiple fronts to prepare for the launch of its first vehicle and is already making changes to the store network to have enough space for cars. Certain non-essential products in the company’s lineup are removed from stores or moved to new locations, as it wants cars to steal everybody’s attention.

The first car to wear the Xiaomi badge is the SU7, an electric sedan that borrows design cues from the Tesla Model 3 and Porsche Taycan. The vehicle was unveiled by China’s Ministry of Industry and Information Technology, with the spec sheet revealing two versions. The entry-level configuration will develop 295 horsepower and use a single electric motor, while the top sibling will sport two units for a total output of 664 horsepower.

Xiaomi is expected to officially take the wraps off the vehicle in early 2024, while mass production should kick off in the first half of the year. The company plans to produce approximately 100,000 units in 2024, with the output to double in 2025, especially as it aims to expand the vehicle lineup with new models. The second Xiaomi vehicle should launch in late 2025 or early 2026.