Xiaomi’s SU7 Delivery Decline Overshadows Sky Nomad Debut and Recycled Aluminium Milestone

Xiaomi unveils Sky Nomad EREV brand and 93% lower-carbon Titan Alloy 2.0, but SU7 delivery drop of 14% and stock down 43% YTD overshadow announcements.

Xiaomi has entered a busy product cycle, unveiling a new electric-vehicle sub-brand and an industry-first recycled aluminium alloy, but neither announcement has been enough to arrest the slide in its share price. The stock closed at €2.58 on Tuesday, having lost nearly 43% since the start of the year and more than 59% over the past twelve months, as a sharp drop in deliveries of its core SU7 model weighs on investor sentiment.

The company confirmed that its forthcoming range-extended electric vehicle (EREV) line will be branded “Sky Nomad” (Xuntian in Chinese). The first model, internally codenamed Kunlun N3, is a full-size SUV measuring over 5.3 metres in length and is scheduled for launch in the second half of 2026. The EREV architecture combines a battery pack with a small combustion engine that acts solely as a generator, addressing range anxiety. Sunwoda and CALB are reported to be the battery suppliers for the new platform.

In parallel, Xiaomi introduced Titan Alloy 2.0, a structural aluminium alloy made entirely from recycled materials. The alloy is already being used in the rear floor assemblies of the SU7 and YU7 models. According to the company, its carbon footprint is 1.1 kg CO?-equivalent per kilogram, representing a roughly 93% reduction compared with conventional primary aluminium. The IVL Swedish Environmental Research Institute has certified the material, which is registered under the International EPD System. Xiaomi estimates the alloy saves nearly 800 kg of CO? per vehicle, translating into a potential annual reduction of almost 450,000 tonnes based on its production target of 550,000 cars.

Yet on the operational front, the picture is more mixed. In May, Xiaomi delivered 24,023 units of the SU7, a month-on-month decline of 10.4% from April and a year-on-year fall of 14.24%. The newer YU7 added 8,736 deliveries, accounting for roughly 27% of Xiaomi’s monthly electric-vehicle volume. According to China EV DataTracker, the SU7 still commanded a 73.3% share of Xiaomi’s EV sales, with the YU7 at 26.7%. Overall monthly EV deliveries crossed 30,000 for the third consecutive month in June, but the first-half run rate still leaves the full-year target of 550,000 units looking ambitious.

The stock’s technical position remains fragile. At €2.58, the share price sits 14.9% below its 50-day moving average and 34.44% below the 200-day line. It has recovered 10.21% from the 52-week low of €2.34 touched on 26 June, but remains 60.36% off the September 2025 high of €6.51. The relative strength index stands at 36.6, approaching oversold territory, while volatility is elevated at 31.54%. Over the past 30 days, the shares have shed 14.22%, though a weekly gain of 4.33% offered a brief respite.

The timing of the recycled-alloy announcement dovetails with the European Union’s push to implement a carbon border adjustment mechanism, which taxes imported vehicles based on their life-cycle emissions. For export-bound models such as the YU7 GT, a lower embedded-carbon footprint could improve Xiaomi’s cost position relative to rivals like BYD when accessing the European market. However, concrete export plans have yet to be detailed.

Meanwhile, Xiaomi is also revamping its artificial intelligence infrastructure. The “Xiao Ai” assistant is being repositioned as an underlying layer for the “Human x Car x Home” ecosystem, and the company plans to release HyperOS 4 in China by July or August 2026, promising greater stability and deeper AI integration.

For now, investors appear focused on the near-term headwinds: declining SU7 sales, persistent margin pressure in the smartphone business, and the high cost of ramping EV production. The Sky Nomad brand and the green alloy are long-term structural bets, but they will do little to lift the stock before the Kunlun N3 reaches showrooms in the second half of next year.