Xiaomi has made waves with its transition from smartphones to electric vehicles, notably with its ambitious SU7 model. Setting a strong footing in the EV market, Xiaomi has recently upped its 2024 sales target to an impressive 130,000 units, reflecting the burgeoning demand for their inaugural vehicle. This revision follows a striking growth in the company’s quarterly revenue, highlighting the enthusiastic reception of the SU7.
Since Xiaomi’s formidable entry into the car world, fueled by its success in consumer electronics—where it sits comfortably as the third largest in global phone market share—the company initially aimed to deliver 100,000 SU7 units within the year. Emboldened by surpassing this goal, Xiaomi CEO Lei Jun announced efforts to boost production to meet the 130,000 vehicle target by the end of 2024.
Reviews have been overwhelmingly positive, even garnering praise from industry competitors like Ford CEO Jim Farley, who was particularly impressed after test-driving the SU7 in the US. This positive buzz contributed to a notable 30.5% leap in Xiaomi’s EV revenue from the second to the third quarter of the year. Despite fierce competition within the Chinese EV landscape, the SU7 has captured significant market share, thanks in part to its sub-$30,000 price point and sleek design reminiscent of Porsche aesthetics. This competitive pricing makes it a considerable option against more costly alternatives, including the Tesla Model 3.
To support its aspirations, Xiaomi has ramped up manufacturing capacity, now capable of outputting 20,000 units monthly. However, despite these strides, the automotive segment hasn’t turned profitable yet, reporting an adjusted loss of 1.5 billion yuan ($207 million) in the third quarter of 2024. Nonetheless, expectations remain high, as analysts predict that Xiaomi could roll out 400,000 EVs in the coming year, which would account for a fifth of the company’s total revenue, a significant leap from the 8% contribution in 2024.
As Xiaomi continues to innovate and expand in the EV market, its journey is set to be a compelling one, promising excitement both for the company and the drivers of its sleek new models.
