In response to the strong market demand, Xiaomi revised its EV delivery targets multiple times. Initially, the company set a goal of delivering 76,000 units in 2024. This target was subsequently raised to 120,000 units and later to 130,000 units for the same year. For 2025, Xiaomi further increased its EV delivery target from 300,000 to 350,000 units, Xiaomi founder Lei Jun said.
For comparison, Tesla has manufactured 1,773,443 electric vehicles in 2024 as compared with 1,845,985 in 2023 and 1,369,611 in 2022. Tesla delivered 1,704,093 Model Y in 2024 as compared with 1,739,707 in 2023.
Xiaomi, traditionally recognized for its smartphones and consumer electronics, has made significant strides in the electric vehicle (EV) sector. In March 2024, the company launched its first electric sedan, the SU7, available in standard, Pro, and Max versions, with prices starting at approximately 215,900 yuan (around $30,000). The SU7’s competitive pricing positioned it favorably against rivals like Tesla’s Model 3, which starts at about $34,000.
The market’s response to the SU7 was overwhelmingly positive. Within 24 hours of its launch, the SU7 received nearly 90,000 orders, making it one of the fastest-selling cars at that time. To meet this surging demand, Xiaomi increased its production capacity, implementing double-shift operations by June 2024. By the second quarter of 2024, the company delivered a total of 27,307 units of the SU7 series.
Expanding its EV lineup, Xiaomi introduced the SU7 Ultra, a high-performance variant, which set a new lap record at Germany’s Nurburgring Nordschleife circuit with a time of 6 minutes and 48.874 seconds. This achievement surpassed the previous record held by Porsche’s Taycan Turbo GT. Additionally, Xiaomi plans to launch the YU7, an electric crossover SUV with a driving range of up to 770 kilometers, posing a competitive challenge to Tesla’s Model Y.
Financially, Xiaomi’s EV business has shown promising growth. In the second quarter of 2024, the company’s innovation segment, which includes smart electric vehicles, reported total revenue of 6.4 billion yuan (approximately $900 million), with a gross profit margin of 15.4 percent. Despite these gains, the auto division reported an adjusted loss of 1.5 billion yuan for the third quarter of 2024, indicating investments in research and development, particularly in autonomous driving technology. ​
Xiaomi has also been expanding its retail presence to support its EV ambitions. As of June 30, 2024, the company had opened 87 car sales stores across 30 cities in mainland China. Looking ahead, Xiaomi plans to introduce the MX11, an electric SUV, in 2025, and is considering the development of an extended-range electric vehicle (EREV) by 2026.
In summary, Xiaomi’s strategic entry into the EV market, characterized by competitive pricing, rapid product development, and substantial investments in technology and infrastructure, underscores its commitment to becoming a significant player in the automotive industry.
Baburajan Kizhakedath