Xiaomi’s innovation business, which includes electric vehicles (EVs), is showing promising growth as the company reported a revenue of RMB 9.5 billion ($1.3 billion) in the third quarter of 2024. This marks a significant increase of 52.1 percent from the second quarter, reflecting the positive momentum of Xiaomi’s EV business.
The company’s EV business, along with other innovative ventures, contributed to a cumulative revenue of RMB 9.7 billion in the third quarter, representing a 52.3 percent increase from the previous quarter. These businesses accounted for 10.5 percent of Xiaomi’s overall revenue during this period.
In terms of vehicle sales, Xiaomi delivered 39,790 units of its SU7 series EVs in the third quarter, bringing the total deliveries of this model to 67,157 units since its launch on March 28. The average selling price of the Xiaomi SU7 in the third quarter was RMB 238,650, a 4.4 percent increase from the previous quarter. This rise in average sales price can be attributed to the higher proportion of Xiaomi SU7 Pro and SU7 Max models delivered during this period.
The Xiaomi SU7 range consists of three variants – Standard, Pro, and Max – with starting prices of RMB 215,900, RMB 245,900, and RMB 299,900 respectively. The company’s gross margin for its innovation business, which includes EVs, stood at 17.1 percent in the third quarter, showcasing the profitability of this segment.
Comparatively, Xpeng reported revenue of RMB 8.11 billion in the second quarter with a gross margin of 14.0 percent, while Nio recorded revenue of RMB 17.45 billion in the same period with a gross margin of 9.7 percent. Xiaomi’s adjusted net profit in the third quarter was RMB 6.3 billion, marking a 4.4 percent year-on-year increase. However, the company reported an adjusted net loss of RMB 1.5 billion from its innovative businesses, including the EV segment.
Looking ahead, Xiaomi aims to deliver 130,000 units of the SU7 series by the end of 2024. As of September 30, the company had 127 car sales stores in 38 cities across China, indicating a strong presence in the local EV market. With its continued focus on innovation and growth in the EV sector, Xiaomi is poised to make significant strides in the automotive industry.
