BEIJING, Oct 29 (Reuters) - Xiaomi ( XIACF ) unveiled a

luxury version of its SU7 electric sports car on Tuesday, saying

the $114,000 model would rank as the fastest four-door car in

production in a direct challenge to the likes of Tesla

and Porsche.

Xiaomi ( XIACF ), still better known for smartphones and home

appliances than cars, entered China's crowded EV market in March

with the launch of its hit SU7, a Porsche lookalike starting at

less than $30,000.

Xiaomi ( XIACF ) CEO Lei Jun, who has a near-celebrity following in

China, used the last section of a live-streamed product update

that ran over three hours to show off the SU7 Ultra.

He also announced pricing that put the new EV on a par with

the Tesla Model S Plaid and signaled an intent to compete on

performance rather than cost with more established car makers.

"This is the world's fastest four-door mass-produced car

currently available," Lei said, adding: "When people ask why we

created such a powerful machine, my answer is simple, we're

building a dream car."

A comparison chart displayed during Lei's presentation

showed the SU7 Ultra outperforming the Porsche Taycan Turbo in

acceleration and top speed specifications.

Lei also said the new car would also be faster than the

Model S Plaid, although the Tesla would still have a better

driving range of 672 km on a charge versus 630 km.

By pricing the SU7 Ultra in line with the Model S Plaid in

China at 814,900 yuan ($114,200), Xiaomi ( XIACF ) also broke with its

earlier strategy of pitching to EV shoppers on value.

Electric motors deliver faster acceleration than combustion

engines. Chinese EV makers have been following Elon Musk's early

playbook for Tesla by launching fast cars designed to showcase

technology and innovation in a segment of the market better

protected from price competition.

RECORD TIME

Xiaomi ( XIACF ) said the production version of the SU7 Ultra would

feature carbon-fiber components, including its roof, performance

ceramic brakes and an aerodynamic styling. The company had

unveiled a prototype in July.

Ahead of Tuesday's event, Lei said the SU7 Ultra prototype

had set a record lap time at Germany's grueling Nurburgring

track.

The 20.8-kilometer Nurburgring has been considered a

benchmark for vehicle acceleration and handling by auto

engineers and has provided bragging rights to automakers for

decades.

Xiaomi ( XIACF ) has said it aims to deliver 120,000 SU7 vehicles by

year end. Xiaomi ( XIACF ) said the first SU7 Ultras would be delivered in

March. It began taking orders on Tuesday and said it had

received more than 3,600 in the 10 minutes after the performance

car's debut.

Xiaomi's ( XIACF ) EV deliveries in China have topped 10,000 per month

since June and hit a high of more than 20,000 vehicles in

October.

Xiaomi ( XIACF ) also launched its flagship Xiaomi ( XIACF ) 15 smartphone

series, with prices starting at 4,499 yuan ($630). The new

phones will be available for purchase from Thursday.

Xiaomi ( XIACF ) faces strong competition from Apple ( AAPL ) and

Huawei in China's premium smartphone market.

Lei said earlier this year that a decision by the Trump

administration to sanction Xiaomi ( XIACF ) in 2021 had been the catalyst

for the company to launch its EV business.

($1 = 7.1365 Chinese yuan renminbi)