Xiaomi, the Chinese tech giant known for its smartphones and smart devices, has made a strong entry into the electric vehicle market. The company announced that it delivered over 27,000 units of its first EV, the SU7 sedan, in the three months ending June 2024. This impressive figure marks Xiaomi’s first quarter as an EV seller, as the SU7 launched in late March and began deliveries in April.
The company’s performance in the EV market is already showing promising signs. Xiaomi generated 6.2 billion yuan ($0.87 billion) in revenue from its EV business during the quarter, with an average selling price of 228,644 yuan ($32,058) per vehicle. Notably, the gross profit margin for the EV business reached 15.4%, indicating strong profitability. The company’s gross profit for the EV division reached 979.8 million yuan ($137.38 million) in the quarter.
Xiaomi’s strong initial sales have exceeded the company’s own expectations. The company had set a goal of delivering 100,000 units of the SU7 by November, but based on current performance, it is now likely to achieve this target ahead of schedule. For the entire year, Xiaomi aims to deliver 120,000 vehicles.
The strong demand for the SU7 is evident. When Xiaomi began accepting orders for the vehicle in March, it received over 50,000 firm orders within just half an hour. The SU7 is available in three variants: Standard, Pro, and Max, with the base model starting at 215,900 yuan, making it more affordable than Tesla’s cheapest offering in China, the Model 3.
For now, Xiaomi’s EV business is focused on the Chinese market. However, the company’s strong initial success suggests that it could potentially expand its reach to other markets in the future.
