Chinese tech giant Xiaomi has raised its 2024 electric vehicle (EV) delivery target to 130,000 units, reflecting a meteoric rise in demand for its first EV, the SU7 sedan. The revised goal marks the third upward adjustment this year, underscoring Xiaomi’s growing momentum in China’s fiercely competitive EV market.
Xiaomi’s CEO, Lei Jun, announced the new target on social media, significantly higher than the initial goal of 76,000 units when the SU7 launched in March. With its sleek Porsche-inspired design and a starting price under $30,000, the SU7 has captured attention as a budget-friendly alternative to Tesla’s Model 3, priced $4,000 higher in China. This pricing strategy has fueled unprecedented consumer interest, positioning Xiaomi as a formidable challenger in the world’s largest EV market.
China’s EV boom has transformed the auto industry, with electric and plug-in hybrid vehicles comprising over 50% of all vehicle sales. In October alone, sales of these battery-powered vehicles surged 56.7% year-over-year, marking the fourth consecutive month they outpaced traditional gasoline cars. To meet surging demand, Xiaomi has doubled production shifts since June and introduced the premium SU7 Ultra model, priced above $110,000.
Xiaomi President Lu Weibing revealed that the company’s factory now produces 20,000 cars monthly, with plans to expand capacity further. “Our investments remain substantial, focusing heavily on hardware, software, and R&D for new models,” Lu said during a post-earnings call. Notably, Xiaomi is intensifying efforts in autonomous driving technology, positioning itself as a leader in future mobility solutions.
Despite its successes, Xiaomi’s EV division is not yet profitable. The unit reported a Q3 loss of 1.5 billion yuan, with EVs contributing just 8% of the company’s overall revenue. However, projections indicate brighter horizons: analysts forecast deliveries to reach 400,000 units by 2025, contributing 20% of Xiaomi’s revenue.
Xiaomi’s Q3 financial results reflect its resilience and growth across diverse sectors. Revenue rose 30.5% year-on-year to 92.5 billion yuan ($12.77 billion), beating analyst expectations. The company also retained its position as the world’s third-largest smartphone maker, shipping 42.8 million units and capturing a 14% market share.
As Xiaomi expands its EV ambitions, it is also ramping up offline retail outlets in China, aiming to grow from 13,000 stores currently to 15,000 by year-end and 20,000 by 2025. With a Q3 net profit of 6.25 billion yuan and aggressive investments in innovation, Xiaomi is shaping its future as a diversified technology powerhouse.
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