Xiaomi Corporation, a leading Chinese technology company, has set its sights on entering the European electric vehicle (EV) market by 2027. This move follows the company’s successful entry into the EV sector in China, which has seen remarkable growth in recent times.
In a recent financial report, Xiaomi revealed a 30.5% increase in overall quarterly revenue during the June quarter, reaching 116 billion yuan ($16.2 billion). The company’s smart EV, AI, and other initiatives generated 21.3 billion yuan in revenue in the second quarter of 2025.
During the same period, Xiaomi delivered 81,302 EV units, marking a significant 197.7% year-on-year growth compared to the previous year. The company’s network of EV sales centers has also expanded, with 335 locations now operating in 92 cities.
Despite initial losses, Xiaomi’s EV division managed to narrow its losses to approximately 300 million yuan during the quarter. Additionally, the gross margin for Xiaomi’s businesses, including smart EVs and AI, improved to 26.4% in Q2, up from 15.4% in the previous year.
Data from the China Association of Automobile Manufacturers (CAAM) indicated a 15% year-on-year increase in Chinese-made vehicle sales to 2.593 million units in July 2025. This growth came after a 5% decline the previous year, with domestic sales rising by 13% and exports surging by 23%.
In June, Xiaomi launched its first battery-powered SUV model, the YU7, which received over 200,000 confirmed orders within an hour of its unveiling. The company also secured a 50-year lease for a 485,134m² plot of land in Beijing for smart connected car and components projects.
Furthermore, in March, Xiaomi agreed to raise $5.5 billion through a placement and subscription agreement involving the sale and issuance of 800 million shares.
With its successful foray into the Chinese EV market, Xiaomi is now poised to expand its presence in Europe, aiming to establish itself as a key player in the region’s growing electric vehicle industry by 2027. This strategic move aligns with the company’s commitment to innovation and sustainability in the automotive sector.
