Xiaomi, the smartphone giant, is making significant strides in the electric vehicle (EV) industry, with plans to achieve profitability in the second half of 2025. This ambitious goal, set by Xiaomi’s founder, chairman, and CEO Lei Jun during the recent Xiaomi Investor Day event, is poised to make Xiaomi EV the fastest to achieve profitability among China’s new automotive brands.
While established players like Nio and Xpeng are aiming to achieve quarterly profitability this year, Xiaomi is making waves with its innovative approach to the EV market. Li Auto has already been profitable since the fourth quarter of 2022, while Leapmotor saw its first quarterly profit in the fourth quarter of 2024.
Xiaomi officially entered the automotive industry in March 2021 and launched its first model, the SU7 electric sedan, in March 2024. In the first quarter of 2025, Xiaomi’s EV business generated an impressive RMB 18.1 billion ($2.5 billion) in revenue, marking an 11.04 percent increase from the previous quarter.
The innovative businesses of Xiaomi, including EV and AI, brought in RMB 18.6 billion in revenue in the first quarter, with a gross margin of 23.2 percent. This is a significant improvement from the 20.4 percent gross margin reported in the fourth quarter of the previous year.
Despite these positive revenue figures, Xiaomi’s innovative businesses, including EV and AI, reported an operating loss of RMB 500 million in the first quarter. This is a decrease from the RMB 700 million operating loss reported in the fourth quarter of 2024, indicating a positive trend towards profitability.
With a strong focus on innovation and a commitment to excellence, Xiaomi is positioning itself as a key player in the competitive EV market. As the company continues to expand its offerings and streamline its operations, the future looks bright for Xiaomi’s electric vehicle business. Stay tuned for more updates on Xiaomi’s journey towards profitability in the dynamic automotive industry.
