Xiaomi, known globally for its smartphones and smart devices, has made a bold entrance into the electric vehicle (EV) industry—an ambitious move that is rapidly transforming it into one of the most talked-about newcomers in the automotive world. What began as a $10 billion investment plan just a few years ago has now evolved into a full-scale automotive operation, with production plants, high-performance models, and a growing presence in China’s competitive EV market.
The company’s debut model, the SU7, a sleek and powerful electric sedan, marked the beginning of this transformation. Released in late 2023, the SU7 quickly gained attention not only for its premium design and performance but also for its ability to rival established players such as Tesla. The SU7’s ultra-fast acceleration, long-range battery, and intelligent cockpit experience helped Xiaomi position itself as a serious contender in the EV sector. It was also one of the few vehicles to clock an impressive lap time at the Nürburgring, showcasing its performance credentials on the global stage.
Following the success of the SU7, Xiaomi unveiled its second EV model in June 2025: the YU7, an electric SUV aimed at mass-market consumers. The YU7 created an immediate sensation, receiving hundreds of thousands of pre-orders within minutes of its announcement. With a competitive price tag, sleek design, and high-end features such as 835 kilometers of range, 800V architecture, and ultra-fast charging capabilities, the YU7 was positioned to disrupt the segment traditionally dominated by models like the Tesla Model Y.
Behind the scenes, Xiaomi has been building out a sophisticated EV manufacturing ecosystem. Its first factory in Beijing began operations in 2023, and a second phase is already underway with completion expected by mid-2025. Most recently, the company acquired additional land to develop a third phase, solidifying its long-term commitment to scaling production to meet surging demand.
Despite this rapid progress, Xiaomi’s EV business has not been without challenges. Delivery times for the YU7 have stretched to nearly a year in some cases, leading to frustration among customers. Thousands placed deposits without knowing how long they would have to wait, sparking complaints on consumer platforms. The company has acknowledged these concerns and is working to ramp up production capacity as quickly as possible.
Financially, Xiaomi has shown resilience in its automotive division. While the EV unit recorded a loss in the first quarter of 2025, revenues exceeded expectations, and the company now projects that the division will break even in the second half of the year. This milestone would mark a major achievement for a newcomer in one of the world’s most capital-intensive industries.
Beyond hardware, Xiaomi is leveraging its software expertise to differentiate its vehicles. Its proprietary HyperOS system integrates deeply across devices, allowing seamless control and synchronization between smartphones and vehicles. This creates a unified ecosystem experience, offering users more than just a car—it offers a connected lifestyle.
Looking ahead, Xiaomi has its sights set on international markets. While current production is focused entirely on the Chinese domestic market, the company plans to begin global sales by 2027. Preparations are already underway, including the establishment of a research and development center in Munich and the recruitment of top talent from established automakers.
Xiaomi’s journey into the EV world is unfolding at remarkable speed. With strong consumer interest, expanding manufacturing capabilities, and a tech-forward approach, the company is rapidly positioning itself as a major player in the future of mobility. As global markets prepare for a new wave of electrification, Xiaomi’s entry could mark the beginning of a new era in which consumer electronics giants become equally dominant in the world of electric vehicles.
