The company's EV branch delivered 27,307 cars in the second quarter of 2024. Xiaomi's base price for the SU7 is 215,900 yuan ($30,000), and the company achieved a higher-than-expected gross profit margin of 15.4%.
On the first day of preorders, Xiaomi received almost 90,000 reservations for the SU7. The company aims to deliver 100,000 vehicles by November and looks set to exceed this target. In the second quarter and July combined, Xiaomi sold an additional 13,000 vehicles.
Xiaomi operates one self-built EV factory, which has been running double shifts since June. The facility now delivers over 10,000 cars monthly.
"The scale of Xiaomi EV business is relatively small at the moment, while the auto industry is a typical industry with economies of scale," a Xiaomi spokesperson said, explaining the current losses and future strategy.
The spokesperson added:
"Xiaomi's first EV is a pure electric sedan, and its investment cost is relatively high, so it will take some time to digest this part of the cost."
Xiaomi, primarily known for smartphones and tech products, launched its first EV in March 2024. The company's EV sales pale in comparison to established players like BYD, which sold 426,039 cars in the same quarter.
Looking ahead, Xiaomi plans to invest tens of billions over the next few years. The company wants to build a variety of EV models beyond the SU7 sedan. Xiaomi also aims to develop self-driving and self-parking capabilities, along with an audio-based AI assistant set to be fully shipped this month.
Citibank analysts project that Xiaomi will need to sell 300,000 to 400,000 vehicles annually to reach profitability. They forecast sales of 260,000 cars by 2026.
Source: Autoblog