Background and Relevance of Xiaomi
Xiaomi, a prominent Chinese technology manufacturer known for its smartphones, electric vehicles (EVs), and other devices, has announced its plans to enter the European EV market by 2027. The company’s CEO, Lu Weibing, expressed confidence in the success of Xiaomi Automobile during a conference with analysts.
Xiaomi’s EV Business Growth
In the second quarter of 2025, Xiaomi reported a net profit attributable of 11,904 million yuan (approximately 1.654 billion USD), a 133% increase compared to the previous year’s April-June period. The company’s overall revenue reached 115,956 million yuan (approximately 16.109 billion USD), a 30.5% increase from the second quarter of 2024.
- Smartphone Sales: Xiaomi sold 45,520 million yuan (approximately 6.324 billion USD) worth of smartphones between April and June, a 2% decrease from the previous year.
- IoT Revenue: The IoT division generated 38,712 million yuan (approximately 5.378 billion USD), a 44.7% increase from the second quarter of 2024.
- Internet Services: The internet services business saw a 10% increase, reaching 9,098 million yuan (approximately 1.263 billion USD).
Despite global smartphone market pressure during the second quarter, Xiaomi’s business demonstrated resilience both domestically and internationally. The company shipped 42.4 million units globally, marking the eighth consecutive quarter of annual growth.
According to Canalys, Xiaomi’s global market share by shipments was 14.7% in the second quarter of 2025, placing it among the top three globally for the twenty-second consecutive quarter.
Electric Vehicle Business Expansion
Xiaomi’s EV, AI, and other initiatives generated 21,263 million yuan (approximately 2.953 billion USD) in revenue during the quarter, more than triple the amount from a year prior (+234%). This accounted for 18.3% of Xiaomi’s total revenue in the quarter, up from around 7% in the previous year.
- Electric Vehicle Sales: Xiaomi sold 20,600 million yuan (approximately 2.861 billion USD) worth of electric vehicles in the quarter, a 230.3% increase year-over-year.
- Delivery and Pricing Factors: The revenue growth in the second quarter was primarily due to increased vehicle deliveries and higher average selling prices. Vehicle deliveries rose 197.7%, from 27,307 units in Q2 2024 to 81,302 units in Q2 2025. The average selling price increased by 10.9%, from 228,644 yuan (approximately 31,764 USD) to 253,662 yuan (approximately 35,240 USD) per unit, mainly due to the high-priced Xiaomi SU7 Ultra.
In the first half of 2025, Xiaomi recorded a net profit attributable of 22,829 million yuan (approximately 3.171 billion USD), a 146% increase from the same period in the previous year. The company’s overall revenue increased by 38.2% interannually, reaching 227,249 million yuan (approximately 31.571 billion USD).
Xiaomi’s European EV Market Entry
Xiaomi aims to enter the challenging European EV market in 2027, applying its successful Chinese business model. The company acknowledges the need to address brand awareness issues before its 2027 entry, as its electric vehicles currently lack significant recognition.
Key Questions and Answers
- Q: When does Xiaomi plan to enter the European EV market? A: Xiaomi aims to officially enter the European EV market in 2027.
- Q: What is Xiaomi’s strategy for the European EV market? A: Xiaomi intends to apply its successful Chinese business model to the European market.
- Q: What challenges does Xiaomi face in the European EV market? A: Xiaomi recognizes the need to address brand awareness issues before its 2027 entry, as its electric vehicles currently lack significant recognition.
