Chinese Tech Giant Xiaomi Plans to Launch Electric Cars in Europe Within Two Years
Renowned for its consumer electronics, particularly smartphones, Xiaomi is now venturing into the electric vehicle market. The company recently introduced its first electric car, the SU7 saloon, in 2023 and aims to establish itself as one of the top five global car manufacturers.
Xiaomi’s second electric vehicle, the YU7 SUV, is already available in China, marking the brand as one of the fastest-growing car manufacturers in its domestic market. With over 80,000 cars delivered in the last quarter alone, Xiaomi Auto is preparing to expand its reach internationally.
During an earnings call, company president William Lu revealed plans for Xiaomi Auto to enter the European electric vehicle market by 2027. Lu hinted at the company’s progress by sharing a photo of an SU7 with German plates on his Weibo account.
While Xiaomi gears up for its European expansion, it faces challenges related to production bottlenecks at its Beijing factory. Current wait times for the SU7 stand at 41 weeks, and orders for the YU7 are backlogged for over a year.
Despite the delays, Xiaomi received a staggering 240,000 orders for its Tesla Model Y competitor within 18 hours of its unveiling. Priced competitively at approximately £29,000, the demand for Xiaomi’s electric vehicles surged, leading to increased production and subsequent delays.
In response to customer dissatisfaction over the delays, Xiaomi’s CEO suggested considering alternative Chinese electric vehicles such as the Xpeng G7, Li Auto i8, and even the Tesla Model Y, acknowledging the competition’s quality.
Despite the challenges, Xiaomi’s electric vehicle business generated revenues exceeding £2 billion in the last financial quarter. The company anticipates achieving profitability on a monthly or quarterly basis later this year, although it continues to operate at a loss due to substantial investments in its launch and expansion.
As Xiaomi prepares to enter the European market, its electric vehicles are expected to target the premium segment, emphasizing performance and advanced technology.
