Xiaomi’s Stock Sits 49% Below Its Peak as the EV Division Gears Up for Germany and Builds Its Own Batteries

Xiaomi's EV business accelerates with new leadership, European entry plans, and battery manufacturing, but shares remain near 52-week lows amid delivery target concerns.

Xiaomi’s electric vehicle business is accelerating on multiple fronts, yet the company’s share price tells a very different story. The stock closed at €3.43 on Friday, a gain of 1.74% on the day and roughly 8% higher over the past week, but that still leaves it down nearly 24% since the start of the year and a staggering 49% below its 52-week high of €6.69.

The disconnect between operational momentum and market sentiment is widening. Xiaomi delivered an estimated 109,000 vehicles between January and April 2026, representing only about 20% of its full-year target of 550,000 units. To hit that goal, the company needs to ship roughly 55,000 cars each month from May through December — a pace it has only achieved once, when it set a monthly record of 50,000 deliveries in December 2025.

A management shake-up with Europe in its sights

Xiaomi EV has installed new leadership to drive its international ambitions. Yu Liguo has been appointed head of the newly created Overseas Business Preparation Group, reporting directly to CEO Lei Jun and President William Lu. The dual reporting line is designed to give the overseas push direct access to corporate resources and decision-making speed. Separately, Song Gang, a former Tesla factory manager, has taken charge of production and manufacturing.

The roadmap is specific: Xiaomi plans to enter the European market in the second half of 2027, starting with Germany. Right-hand-drive markets such as the UK, Japan and Australia are slated for the first half of 2028. A research and development centre in Munich is already operational, staffed with roughly 50 engineers and designers recruited from BMW, Porsche and Mercedes-Benz.

In-house batteries and a second car brand

Less visible but strategically significant, Xiaomi has registered a new subsidiary called Xiaomi Jingxu Technology Co., Ltd. in Chinese commercial records, with a business scope covering battery manufacturing and sales. While the company has not officially confirmed full-scale in-house production, the move signals a deeper push into the supply chain. Drive batteries account for 35% to 45% of the total cost of an electric vehicle, and Xiaomi currently sources its cells from BYD Fudi and CATL.

On the product front, the SU7 continues to perform well. Xiaomi sold 258,000 units of the model in 2025, outselling the Audi A6L in China. CEO Lei Jun recently launched a referral programme for the SU7, offering 8,000 points to customers who use a referral code and complete a purchase, though the offer is limited to the first ten recipients. The company has committed roughly $10 billion to its automotive division over a ten-year horizon.

A second brand is also taking shape. The subsidiary Xuntian plans to launch a full-size SUV with a range extender in the second half of 2026.

HyperOS 4 and a fresh wave of devices

Xiaomi’s software ecosystem is getting a major overhaul. HyperOS 4 will feature a completely redesigned interface in a “Liquid Glass” style, replacing old MIUI codebases entirely. The operating system is being built on the Rust programming language and the Flutter framework. High-end models such as the Xiaomi 17 and 15 series are expected to be the first to receive the update, with a launch likely in June or September 2026, though the company has not yet confirmed a date.

New hardware is also on the way. The Xiaomi 17 Max, which has already received Chinese certification, is expected to launch in China at the end of May. It will feature a 6.9-inch OLED display and an 8,000 mAh battery. At the budget end, Xiaomi is rolling out the Redmi A7 4G in Europe for around €109, while the Redmi A7 Pro 4G will start at roughly €130 in Italy.

Buybacks and a key earnings test

The company has been active in the market with its share buyback programme, which had repurchased HK$7.4 billion worth of shares by the end of April — more than in the entire previous year. The board is scheduled to meet on 26 May to review first-quarter 2026 results. Those numbers will provide the first clear look at how the EV division’s strength is balancing against a weaker smartphone business, and whether the operational story can finally close the gap with the stock price.