Xiaomi, known for its dominance in the smartphone industry, has disrupted the electric vehicle (EV) market with its stunning debut of the SU7. In just 230 days, the company produced a record-breaking 100,000 EVs, significantly outperforming previous records and redefining the market landscape.
Quarterly Performance Reflects Growth
Xiaomi’s Q3 2024 report reveals outstanding financial results:
- Revenue Growth: Up 30.5% to 92.5 billion yuan.
- Net Profit: Climbed to 6.3 billion yuan, showcasing the company’s efficient scaling.
- Cash Reserves: Reached a historic high of 151.6 billion yuan.
The Xiaomi Auto SU7, the company’s first EV, was the star performer, delivering 39,790 vehicles in Q3 alone and contributing 9.5 billion yuan to the company’s revenue. With the popularity of the Pro and Max versions, the SU7 has become a preferred choice in the competitive EV market.
Ambitious Plans for 2024
Riding on the success of the SU7, Xiaomi has revised its production target to 130,000 units by the end of 2024, a sharp increase fueled by surging demand and glowing reviews. Notably, the CEO of Ford, Jim Farley, praised the SU7 after a personal test drive, further boosting its credibility on the global stage.
Competitive Pricing and Design
The SU7 starts at under $30,000, making it approximately $4,000 more affordable than the Tesla Model 3, while offering premium styling inspired by Porsche. This combination of affordability and luxury has helped Xiaomi carve a niche in the Chinese EV market, despite fierce competition.
Scaling Production and Efficiency
Xiaomi’s production facility now manufactures 20,000 units per month, showcasing efficiency and reduced costs per car. The company’s 127 EV sales centers across 38 Chinese cities position it for robust growth. Analysts predict that Xiaomi’s automotive division will account for 20% of total revenue in 2025, up from the current 8%.
Looking Ahead: Xiaomi’s EV Roadmap
While Xiaomi’s EV division is not yet profitable, reporting a Q3 adjusted loss of 1.5 billion yuan, analysts remain optimistic. Huatal Securities forecasts Xiaomi delivering 400,000 EVs in 2025, solidifying its place among leading global EV manufacturers.