Xiaomi's EV Ambitions Face a Critical Test

Xiaomi's EV unit launches a major product push with 4-6 new cars by 2026 and hires ex-Tesla China GM, aiming for 550k annual sales despite slumping demand for an older model.

As the Chinese technology giant marks a significant corporate anniversary, its crucial electric vehicle division presents a contradictory picture. The company is banking on an aggressive product rollout and high-profile talent acquisition to salvage ambitious annual targets, against a backdrop of sharply diverging demand within its model lineup.

A High-Stakes Product Offensive

Facing operational headwinds, Xiaomi's management is responding with a substantial expansion of its automotive portfolio. Plans are in place to launch between four and six new vehicles by 2026. This strategy involves a dual approach, featuring both pure electric cars and models equipped with range extenders. The new sedans and SUVs are designed to target price segments from approximately $29,000 to nearly $80,000, aiming to capture a broader spectrum of buyers.

In a notable move to strengthen its sales operations, Xiaomi recruited Kong Yanshuang in March. She previously served as the general manager for Tesla China, bringing direct experience from a key competitor. Despite current challenges, the leadership remains firmly committed to its goal of delivering 550,000 vehicles for the full year 2026. The success of this new model variety is now critical to offset weakening demand for an older model and support these targets. The market is likely to gain clearer fundamental insights with the release of first-quarter financial results, expected by the end of May.

Diverging Fortunes Within the Model Range

Recent sales data reveals a stark contrast. In early April, CEO Lei Jun announced that the refreshed SU7 model had already secured over 40,000 firm orders. Deliveries commenced at a rapid pace, just four days after its official unveiling in March. However, this success highlights a structural challenge within the company's product portfolio.

The YU7 model, which accounted for nearly 38,000 deliveries as recently as January, is experiencing a significant loss of momentum. Waiting times for this vehicle have collapsed from a peak of up to 56 weeks to just 7 to 14 weeks currently. Market observers interpret this sharp reduction as a clear indicator of a dwindling order backlog. This uncertainty is reflected in the company's stock performance. Shares are currently trading near €3.52, close to their 52-week low and marking a decline of more than 21% since the start of the year. Against this financial backdrop, the concurrently launched global "Xiaomi Fan Festival," celebrating over one billion connected smart home devices, has quickly faded from investor focus.