Xiaomi's EV Ambition: A Tale of Two Models as Company Marks Anniversary

Xiaomi's new SU7 EV sees strong launch orders, but YU7 SUV demand softens. The company's smartphone business remains robust as it plans a major EV model expansion by 2026.

As Xiaomi celebrates its corporate anniversary, the event has become a showcase blending promotional spectacle with hard sales data. The company's electric vehicle division presents a dual narrative: its newly launched SU7 sedan is off to a powerful start, while demand for its established YU7 SUV model shows signs of softening.

Smartphone Business Provides Solid Foundation

Beyond the automotive headlines, Xiaomi's core smartphone operations continue to deliver a robust performance. The company maintained its position as the world's third-largest smartphone vendor, having sold 165.2 million units globally for a 13.3% market share. Notably, within China's premium device segment, Xiaomi achieved a record-breaking share of 27.1%.

Strong Debut for the SU7 Sedan

During a marathon three-and-a-half-hour live stream on April 2nd, founder and CEO Lei Jun announced that pre-orders for the new SU7 had already surpassed the 40,000-unit mark. Since deliveries commenced on March 23rd, more than 7,000 units of this model have been handed over to customers. This contributed to a total March delivery volume exceeding 20,000 vehicles for Xiaomi Auto.

The SU7 enters the market featuring an 800-volt architecture, LiDAR sensors, and the XLA AI language model as standard equipment. With a starting price of 219,900 yuan, Xiaomi has positioned the model approximately 15,600 yuan below the Tesla Model 3 in its home market—a deliberate pricing strategy.

Contrasting Picture for the YU7 SUV

A different trend is emerging for the YU7 SUV. Waiting times have decreased significantly from an initial range of 33 to 56 weeks down to just 7 to 14 weeks, a clear indicator of easing demand. Data from Goldman Sachs substantiates this shift: in the 13th calendar week, total orders for Xiaomi Auto fell by 61% compared to the previous week and were also 14% lower than the level seen in the same period last year.

In response, the company has outlined an expansion plan, targeting the launch of four to six new vehicle models by 2026. This future lineup will include sedans and SUVs with both five and seven seats, priced between 200,000 and 550,000 yuan. The annual delivery target of 550,000 units appears ambitious, following the delivery of approximately 412,000 vehicles in 2025.

Financial Context and Market Performance

A key development for the overall valuation is that the EV division turned a profit for the first time in 2025. On revenue of around 13 billion euros, it recorded a profit of approximately 113 million euros. Despite this milestone, Xiaomi's shares currently trade nearly 47% below their 52-week high, placing them well below the 200-day moving average.

The broader model offensive planned for the coming years will be tested against the current order decline for the YU7. Whether it can structurally compensate for this weakness will become evident, at the latest, in the delivery figures for the second quarter.