Xiaomi’s electric vehicle (EV) business continues to thrive, with the company reporting impressive revenue growth in the second quarter. According to Xiaomi’s unaudited financial report released recently, the EV business generated RMB 20.6 billion ($2.87 billion) in revenue during the quarter, marking a significant 13.81 percent increase from the previous quarter and a staggering 232.26 percent surge from the same period last year.
The innovative businesses segment, which includes EV and AI, contributed RMB 21.3 billion in revenue, with a gross margin of 26.4 percent – a notable improvement from the first quarter and the same period last year. Despite reporting an operating loss of RMB 300 million in the first quarter, the innovative businesses saw a positive trajectory in the second quarter.
Xiaomi achieved a record-breaking milestone in vehicle deliveries, with 81,302 units delivered in the second quarter. This represents a remarkable 197.73 percent increase year-on-year and a 7.16 percent growth from the previous quarter. The company’s EV lineup, including the SU7 electric sedan and YU7 electric SUV, has been well-received in the market.
The SU7 electric sedan, available in Standard, Pro, Max, and Ultra variants, has garnered attention for its performance and competitive pricing. The SU7 Ultra, with a maximum horsepower of 1,548 PS, has been particularly popular among enthusiasts. Xiaomi’s foray into the electric SUV segment with the YU7 has also been successful, positioning the company as a strong competitor to established players like Tesla.
With 335 car sales stores in 92 cities across China, Xiaomi has established a robust presence in the domestic market. The company’s expansion strategy includes exploring overseas markets, as evidenced by the registration of the first experimental vehicle in Europe. Xiaomi’s commitment to innovation and sustainability in the EV sector underscores its position as a key player in the rapidly evolving automotive industry.
Overall, Xiaomi’s EV business continues to show promise and growth potential, driven by strong revenue performance, record deliveries, and a diverse product portfolio. As the company focuses on expanding its presence and offerings, it is poised to make a significant impact in the electric vehicle market both domestically and internationally.
