Xiaomi's EV business is finally profitable
What's the story
Xiaomi has announced its electric vehicle (EV) division has turned profitable for the first time. The milestone comes after the company launched its first car last year. In the September quarter, the division posted a profit of CNY 700 million ($98 million), reversing a loss of CNY 300 million in the previous quarter. The result helped Beijing-based Xiaomi more than double its net income during that period.
Market position
EV division joins profitable Chinese EV makers
With this achievement, Xiaomi's EV division has joined a select group of Chinese electric vehicle manufacturers that are actually making profits. The company is now ramping up production to compete with established players like Tesla and BYD in China, and eventually in Europe by 2027. This aggressive expansion plan is part of the company's ambition to become one of the world's top five carmakers.
Product success
1st SUV receives positive market response
Xiaomi's first sports utility vehicle (SUV) has received a positive response from the market, with strong orders coming in. The company's co-founder Lei Jun had hinted at this profitability earlier this year. Xiaomi executives announced that they would meet their 2026 target of 350,000 EV deliveries this week, more than a month ahead of schedule.
Market competition
Xiaomi faces challenges amid rising demand
Despite the early success, Xiaomi is facing some challenges. The company has been criticized by some investors for its long-term outlook due to fierce competition, safety concerns, and ongoing factory delays. High demand and production issues have led to wait times of up to nine months for certain models after order placement. In October, Xiaomi reported shipping over 40,000 EVs, unchanged from the previous month's figure.