Xiaomi's Electric Vehicle Strategy Gains Momentum with Model Refresh and Alliance Talks

Xiaomi ramps up SU7 electric sedan production, eyes European market via potential Stellantis partnership, and rolls out new software amid strategic share buyback.

The Chinese technology conglomerate Xiaomi is intensifying its strategic push to become a significant player in the electric vehicle (EV) sector. Recent developments, including a key model update and high-level partnership discussions, are drawing investor attention to the company's automotive ambitions.

Strategic Share Buyback and Software Update

In a move separate from its automotive operations, Xiaomi repurchased 2.0 million of its own shares on March 13 for approximately 67.5 million Hong Kong dollars. Furthermore, the company commenced the rollout of HyperOS 3.1, based on Android 16, for its latest flagship devices in China starting March 15.

Revamped SU7 Sedan Aims to Boost Production

A central focus is the upcoming launch of an updated version of its SU7 electric sedan. Customer deliveries for the refreshed model are scheduled to begin before the end of March. Xiaomi has set a production target of 16,000 units for this month, a significant increase from the mere 218 vehicles sold in February. The company attributed February's low delivery figures to an ongoing retooling of its production lines.

All variants of the new SU7 will come equipped with LiDAR as standard. However, this upgrade and increased production costs for the new generation are expected to lead to a price adjustment for the vehicle. Xiaomi is positioning its 897V platform and standardized LiDAR as key differentiators in a fiercely competitive Chinese EV market, where rivals like Tesla, Nio, and Zeekr are emphasizing range and advanced driver-assistance systems.

European Market Access Through Potential Stellantis Partnership

According to reports, Xiaomi is engaged in discussions with automotive giant Stellantis regarding a potential collaboration in the EV space. Such a partnership could provide Xiaomi with access to European manufacturing capacity, thereby facilitating an entry into one of the world's most important automotive markets. No concrete outcomes from these talks have been disclosed to date.

Share Price Context and Outlook

Xiaomi's share price currently trades approximately 46% below its 52-week high of 7.07 Euros, which was reached in March 2025. Market observers are now watching to see if the production ramp-up of the SU7 and any potential progress in the Stellantis negotiations can help stabilize the equity's performance. The upcoming release of March sales figures is anticipated to provide clearer direction.