Digital Technology Promotes the Innovation and Development of New
Energy Vehicles: Taking Xiaomi Automobile as an Example
Jiashu Mo
a
University of Sunderland, Management Development Institute of Singapore, Singapore
Keywords: New Energy Vehicles, Digital Technology, Artificial Intelligence, Market Competition, Sustainable
Development.
Abstract: In recent years, a profound change taken is taking place in the global automotive industry. Compared with
fuel vehicles, new energy vehicles are gradually taking over the global market with their low carbon emission,
high efficiency and energy saving features. And driven by digital technologies such as AI and IoT, automobile
intelligence has become an industry trend. And this paper aims to explore how digital technology can promote
product innovation and user experience of new energy vehicles. Through the study of the literature review,
Xiaomi Automobile's success in integrating smart hardware and its ecosystem, as well as its application of
autonomous driving, smart cockpit and connected car technologies. These prominent innovations not only
enhance the user's traveling experience but also become the brand's market competitiveness. With the current
intensification of market competition, Xiaomi Automobile is similarly facing many challenges in various
aspects such as technology development and brand building. The results of the study show that by
strengthening industrial cooperation, implementing a differentiated brand strategy and focusing on sustainable
development, Xiaomi Auto can effectively respond to the current technical and market pressures and
contribute to the long-term sustainable development of the new energy vehicle industry.
1 INTRODUCTION
In recent years, the trend of the Internet of Things
(IoT) and Artificial Intelligence (AI) as well as the
current global concern for the environment has been
gradually rising, and in this context, the development
of new energy vehicles is also gradually rising, and
this is also a transition process for the global
automotive industry to new energy vehicle
development.
The Connectivity between automotive devices is
oriented to provide users with a more convenient
experience (Yarali, 2021). Through artificial
intelligence, cars can change traditional driving
patterns to provide safer and smarter alternatives,
such as autonomous driving or smart cruising. Such
intelligent driving systems not only utilize big data
for real-time analysis but also make optimal driving
decisions based on the surrounding environmental
data. Such intelligent development not only improves
driving safety but also raises the expectations of the
user in terms of mobile experience.
a
https://orcid.org/0009-0005-4358-7803
The Internet of Things (IoT) is one of the most
recent technologies that empower the automobile
industry to create the next generation of vehicles.
Using IoT-based automotive techniques is
significantly renovating the way that people can
easily interact with the vehicles (Kumuthini et al.,
2024).
In the industry of new energy vehicles, the digital
transformation of enterprises is not only a means to
enhance the competitiveness of products, but also an
important choice to comply with market
development. In the current market, more and more
automobile enterprises realize that in the big
environment of digitalization, enterprise technology
is not only a simple introduction, but also the
introduction of a new business thinking and mode. By
learning and studying the current advanced digital
technology, it allows traditional automotive
companies to achieve more efficient operations in a
variety of areas such as research and development,
manufacturing, sales and service, and also improves
548
Mo, J.
Digital Technology Promotes the Innovation and Development of New Energy Vehicles: Taking Xiaomi Automobile as an Example.
DOI: 10.5220/0013849400004719
Paper published under CC license (CC BY-NC-ND 4.0)
In Proceedings of the 2nd International Conference on E-commerce and Modern Logistics (ICEML 2025), pages 548-553
ISBN: 978-989-758-775-7
Proceedings Copyright © 2025 by SCITEPRESS – Science and Technology Publications, Lda.

the interaction with consumers, thus enhancing brand
loyalty.
Xiaomi, as a long-term research in artificial
intelligence, the Internet of Things and big data
aspects of science and technology-oriented
enterprises, in this aspect of intelligent technology
has a very strong advantage, and for the new product
Xiaomi car, Xiaomi is not only concerned about the
enhancement of the performance of the car, but also
more concerned about how to integrate the car into
the user's lifestyle, so as to provide the user with a
smarter and more convenient way of life.
In the face of fierce market competition, new
energy vehicle manufacturers need to utilize digital
means to continuously innovate their products and
improve the quality of their products and services in
order to meet the diversified needs of consumers. In
such an environment, how to effectively use the
enterprise's technology to achieve differentiated
competition has become a new energy companiesnew
energy company to face the primary challenge.
Against this background, the research objective of
this thesis research is to investigate how digital
technologies can lead to product innovation and user
experience enhancement in new energy vehicles.
Through a literature review and analysis, this paper
will explore the practical application of digital tools
in the transformation of the industry and analyze the
shortcomings of related studies. This study hopes to
provide useful insights for companies in the new
energy vehicle sector to help them achieve greater
success in their digital transformation process.
2 PATHWAYS OF DIGITAL
TECHNOLOGY DRIVING
INNOVATION IN NEW
ENERGY VEHICLES
2.1 Artificial Intelligence and
Autonomous Driving
Artificial intelligence is the core technology that
transforms new energy vehicles into intelligent
vehicles, especially in the field of autonomous
driving. Artificial intelligence not only improves the
safety and convenience of driving but driving but also
becomes the technological frontier in corporate
competition. As a typical cross-industry automotive
representative, Xiaomi makes full use of its
accumulation in AI algorithms, big data, terminal
hardware and operating systems to create a
differentiated autonomous driving system.
In terms of functionality, the Xiaomi SU7 has
excellent NOA technology. As nowadays, road traffic
accidents represent a major public health concern as
they are the primary cause of death and disability
worldwide, resulting in over a million deaths annually
and between 20 and 50 million injuries, some of
which can lead to permanent disabilities (Emam and
Gerdts, 2024). Therefore, Xiaomi pays great attention
to this aspect, and its NOA function is able to perform
automatic lane changing, obstacle avoidance, traffic
signal recognition and steering in complex urban
environments, which significantly improves the level
of driving intelligence and user experience.
Xiaomi's advantage lies in its establishment of a
complete data closed-loop system. Xiaomi ’ s
approach mainly includes， connecting Mi supply
chain on a global level where Xiaomi leverages its
international brand influence, total supply chain
established from its cell phone business, and Mi Fans
who have been using the product and service based
on the MIUI system or Xiaomi's IoT platform; (Lee
et al., 2023).By having a global presence, Xiaomi is
able to effectively integrate its supply chain
operations, enabling efficient resource allocation and
cost management. This, in turn, enables Xiaomi to
respond quickly to market demand as well as provide
strategic positioning for technological advancement.
In addition, active interaction with Mi fans is a
continuous and effective feedback loop that allows
Xiaomi to improve its products and services. Xiaomi
utilizes its MIUI system and IoT platform to gather
user insights and plays an equally pivotal role in
enhancing user experience and fostering brand
loyalty.
As a result, Xiaomi has not only maintained its
competitive edge, but has also paved the way for
innovative growth, setting industry benchmarks in
technology and customer satisfaction. This
comprehensive ecosystem approach underscores
Xiaomi's commitment to excellence and innovation.
In contrast to Xiaomi, Tesla is more inclined
towards an "edge computing capability + no lidar"
solution. Tesla's full self-driving (FSD) computer is
the world's first purpose-built computer for the highly
demanding workloads of autonomous driving. It is
based on a new System on a Chip (SoC) that
integrates industry-standard components such as
CPUs, ISP, and GPU, together with custom neural
network accelerators (Talpes et al., 2020). This
innovative approach allows Tesla to process data in
real-time directly within the vehicles, minimizing
latency and enhancing the immediacy of decision-
making vital for safe autonomous driving. By
eschewing lidar technology, Tesla relies heavily on
Digital Technology Promotes the Innovation and Development of New Energy Vehicles: Taking Xiaomi Automobile as an Example
549

its advanced software algorithms and computer vision
through cameras, positioning itself distinctively
within the autonomous vehicle market. This edge
computing strategy not only reduces the reliance on
high-bandwidth cloud computing but also ensures
that updates and enhancements can be rolled out over-
the-air to constantly improve performance. Tesla's
method emphasizes the importance of robust onboard
processing capabilities, highlighting the company's
commitment to pioneering scalable and efficient
solutions for autonomous transportation. This
positions Tesla as a front-runner in the industry,
driven by a unique blend of hardware innovation and
software excellence. However, there are still
limitations in its performance on China's complex
urban roads.
Huawei, on the other hand, focuses on
constructing a full-stack solution. In May 2019,
Huawei officially established an auto business unit.
On October 30, 2020, Huawei released the intelligent
car solution "HI", which aims for in-depth
cooperation with automobile manufacturers. (Lee et
al., 2023). This landmark strategic move also
represents Huawei's ambition to leverage its
technological expertise in a number of areas,
including 5G, cloud computing, and AI, to drive
innovation, as well as enter the automotive industry.
The “HI” solution demonstrates Huawei's
commitment to partnering with carmakers to enhance
the smartness and connectivity of the modern
automobile. However, Huawei's ecosystem
integration capabilities are slightly less impressive
than Xiaomi's complete closed loop of integrating car,
home and user experience. Huawei specializes in
creating high-tech solutions tailored to cars but faces
challenges in creating a seamless user experience
across different domains such as smart homes and IoT
platforms.
2.2 Marketing Strategies
Unlike many companies that rely on traditional
spokesperson marketing strategies, Xiaomi is
personally endorsed by its founder and president Lei
Jun, who successfully attracts significant attention
through his influence on social media. Lei Jun's
entrepreneurial story and the durability and high cost-
performance ratio of Xiaomi products enhance
consumer trust. This kind of market promotion
conducted via social media laid a solid foundation for
the launch of Xiaomi cars.
With its outstanding features, as well as powerful
performance and competitive price, Xiaomi SU7 has
won the positive response of many young consumers
upon its launch. As a result, the Xiaomi SU7 has
performed very well in the market, and it has received
enthusiastic support from many young consumers
right after its release.
2.3 Internet of Vehicles (IoV): Building
a Smart Connected Mobility
Experience
The intelligentization of new energy vehicles has
always been a very important technology, that is,
Telematics. Because Telematics is a bridge to realize
the comprehensive connection of vehicles, people,
clouds and things, it can provide users with many
intelligent functions, such as remote control,
intelligent cockpit, interconnection of in-vehicle
devices and so on. With years of technical
accumulation in the field of Internet of Things and
mobile intelligent terminals, Xiaomi has made
Xiaomi cars unique in Telematics, and such a deep
integration also demonstrates Xiaomi's outstanding
technological leadership and user experience
advantages.
Taking the Xiaomi SU7 as an example, users can
remotely control the vehicle through the Xiaomi Car
App or Xiao Ai, including functions like remote
unlocking, air conditioning pre-start, vehicle power
monitoring, vehicle location, and electronic fencing,
greatly enhancing the convenience and intelligence of
everyday vehicle usage. This is also attributable to
Xiaomi's smart home ecosystem, because at this
stage, the Xiaomi eco-chain has basically covered all
hardware areas of the smart home, which makes
Xiaomi’s core position unshakable.
In addition, Xiaomi Auto's intelligent cockpit
system is based on the “Surge OS” operating system,
demonstrating powerful hardware and software
integration capabilities, and realizing cross-screen
connectivity and content synchronization with
Xiaomi's cell phones, tablets, televisions, and other
devices.SU7 is equipped with interactive displays,
including a central control screen, a passenger
entertainment screen, and a heads-up display (HUD),
supporting navigation screen projection, music
sharing, trip reminders, and various application
streams. SU7 is equipped with interactive displays,
including a central control screen, a passenger
entertainment screen and a head-up display (HUD),
which support navigation screen projection, music
sharing, trip reminders and a variety of application
streams, creating an immersive travel experience in
which “people, cars and homes are fully
interconnected”.
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Xiaomi's greatest advantage in the field of the
Internet of Vehicles lies in its concept of "ecosystem
empowerment," which integrates vehicles into the
existing IoT smart home system through a unified
system architecture. This innovation transforms
vehicles from isolated transportation tools to integral
elements of smart living. As of March 2018, Mi AI of
Xiaomi can control 118 models of intelligent
hardware on the platform and support the interactive
use of millions of intelligent devices in various
scenarios (Zheng et al., 2023). Such seamless
integration not only enhances the user experience but
also opens up new possibilities for connected lifestyle
applications. The ability to control and interact with
so many devices is a similar reflection of Xiaomi's
extensive reach and technological prowess in
developing a cohesive ecosystem. This level of eco-
collaboration ensures that Xiaomi's in-car
information system has the practical and powerful
functionality and connectivity that makes it so
competitive in the industry. By embedding cars into
its vast IoT network, Xiaomi enhances its ability to
innovate and facilitate the incorporation of future
technological advances, positioning itself as a leader
in the integration of smart home and automotive
technologies.
3 XIAOMI AUTO'S UNIQUE
DIGITAL INNOVATION
STRATEGY
3.1 Technology Integration and
Ecological Synergy
Xiaomi has created a seamless user experience by
deeply integrating its technological strengths in
smartphones, smart homes, and the Internet of Things
(IoT) into its automotive products. Car owners can
not only control in-vehicle devices (such as air
conditioning, lighting and entertainment systems)
through their cell phones, but also connect Xiaomi's
smart home products to their cars to realize cross-
device and cross-scene intelligent control. In
addition, with Xiaomi's powerful cloud computing
capabilities, the vehicle can synchronize data in real
time for remote upgrades to optimize the driving
experience.
3.2 Community-Driven Customization
Xiaomi adheres to the concept of “user first” and
actively encourages users to participate in the
development and design of automotive products. To
support online promotions, Xiaomi has launched
other offline activities, such as city meetings, the
Geek Party, and Popcorn and Netizen initiated
meetings in the same city (Yang, 2022).
3.3 Asset-Light Digital Operation
Xiaomi adopts an asset-light model to integrate
supply chain resources through a digital platform to
reduce high costs in traditional manufacturing. For
example, Xiaomi cooperates with third-party
manufacturers to share production resources, which
not only saves the cost of factory construction, but
also enables Xiaomi to adjust its production schedule
more flexibly and respond quickly to market demand.
Meanwhile, through digital management, Xiaomi is
able to track market trends and consumer demand in
real time, so as to optimize the production process,
improve efficiency and reduce costs.
4 CHALLENGES AND
RECOMMENDATIONS
4.1 Main Challenges
Xiaomi cars face many challenges in rapid
development. First, the development of self-driving
technology requires a huge investment from Xiaomi.
Automatic driving technology driving involves a lot
of investment in hardware and software development,
which poses a huge financial and technical challenge
to Xiaomi Auto.
Secondly, competition in the field of intelligent
cars is extremely fierce, and a large number of
emerging car companies has have risen rapidly (Xue,
2025). Secondly, the competition in the field of
intelligent vehicles is extremely fierce, with a large
number of emerging car companies rising rapidly. As
a result, Xiaomi Auto is facing tremendous pressure
in the competitive market, as traditional carmakers
like Tesla in the US and BYD in China have been
developing intelligent and electrified vehicles for a
long time and have mature technologies. At the same
time, some new energy car companies like Xiaopeng
and Azalea are also moving farther and farther down
the road of intelligent driving technology. For Xiaomi
Auto, the release of the Xiaomi SU7 Ultra is not only
a challenge to the technological limits of traditional
car brands, but also a new innovation in automotive
intelligence. However, such breakthrough technology
may also intensify the competition with other
Digital Technology Promotes the Innovation and Development of New Energy Vehicles: Taking Xiaomi Automobile as an Example
551

innovative enterprises, especially in terms of
intelligent technology and brand influence.
4.2 Strategic Recommendations
Firstly, cooperative research and development (R&D)
has emerged as a highly effective strategy for
enterprises to enhance their R&D efficiency and ease
resource bottlenecks (Huang &and Tan, 2024).
Strengthening technical cooperation and expanding
industrial alliances is crucial. Xiaomi can solve the
technical difficulties encountered in the development
of autonomous driving and smart car technology by
cooperating with established traditional automakers,
or emerging new energy vehicle brands and various
research institutions. Especially after the emergence
of intelligent models such as the Xiaomi SU7 Ultra,
cooperation with other companies can help Xiaomi
further accelerate the speed of research and make
more breakthroughs. And in forming industrial
alliances with other companies, Xiaomi can also
utilize the experience of its partners to shorten the
research and development cycle and reduce cost
pressures while obtaining external technical support.
Secondly, the implementation of differentiated
market positioning as well as brand building strategy
is crucial for Xiaomi. Through differentiated
positioning, Xiaomi can gain a competitive advantage
in the market for cars. And through Xiaomi's original
advantages in smart hardware and IoT ecosystem, it
can allow Xiaomi to demonstrate uniqueness in terms
of user needs such as smart cockpit, in-vehicle
information service and personalization to meet the
needs of different consumers.
Lastly, paying attention to sustainable
development and environmental protection strategies
is vital. As global environmental standards rise, new
energy vehicles (NEVs) are crucial in addressing
environmental pollution and energy shortages (Fan et
al., 2024). Xiaomi can promote the sustainable
development of new energy vehicles by strengthening
green transportation and environmentally friendly
designs. Through these strategies, Xiaomi can
effectively respond to the current technological,
market, and competitive pressures, continue to
strengthen its technological capabilities and brand
influence, and achieve sustainable long-term
development in the smart automotive industry.
5 CONCLUSION
In this paper, through the method of literature review,
in-depth research has been conducted to study how
digital technology can promote the product
innovation and user experience of new energy
vehicles. This study examines how digital
technologies can be applied to the transformation of
the smart car industry and analyzes the shortcomings
of the study. The paper examines in detail Xiaomi
Automobile's performance in AI, Internet of Vehicles
(IoV), and integration with smart ecosystems, and
summarizes some application paths to provide
suggestions for the digital transformation of
enterprises.
The study shows that Xiaomi Auto, as a
technology leader, has fully utilized its technological
advantages in AI and IoV to promote the intelligence
of new energy vehicles. The launch of Xiaomi SU7
Ultra establishes industry standards in intelligent
cockpit and autonomous driving technology, and
technology and demonstrates Xiaomi's advantages in
technology integration and ecological synergy. The
perfect data closed-loop system enables users to enjoy
a more personalized travel experience, thus
enhancing brand loyalty.
In terms of responding to market competition and
technological challenges, this paper proposes specific
countermeasures. First, it is recommended that
Xiaomi Automobile strengthen technical cooperation
with traditional car companies and technology
companies to break through the bottleneck of
automatic driving and intelligent technology through
joint research and development. Through industrial
alliances, Xiaomi can not only obtain external
technical support but also shorten the R&D cycle with
the experience of its partners. This cooperation model
helps Xiaomi to take advantage of the fierce market
competition.
Second, this paper emphasizes the importance of
implementing differentiated market positioning and
brand building. Xiaomi should continue to strengthen
its strengths in the smart hardware and IoT
ecosystems, attract a broader consumer base through
a clear brand story and market positioning, especially
when launching its flagship models, and create a
strong brand image to further enhance its market
competitiveness.
As the world places more emphasis on
environmental protection, Xiaomi is advised to
enhance its investment in the sustainable
development of new energy vehicles. By adopting
environmentally friendly technologies, using
recyclable materials, and improving battery
efficiency, Xiaomi can enhance its brand image, as
well as meet policy requirements and consumer
expectations for environmental protection.
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Looking ahead, with the continuous advancement
of digital technology, the new energy automotive
industry will realize deep integration in terms of
intelligence, environmental protection and user
experience. If Xiaomi Auto can continue to increase
investment in technology research and development
and optimize product design and user services, it will
win greater success in market competition and make
greater contributions to the sustainable development
of the industry.
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