Xiaomi Bets on German Dealer Network and a Price-Savvy Foldable as Its Stock Sits 55% Below Peak

Xiaomi signs letters of intent with eight German dealer groups for its electric SUVs, as the stock sits 32% lower year-to-date.

Xiaomi is making its European automotive debut through partnerships rather than a solo retail push, signing letters of intent with eight German dealer groups as it prepares to sell electric family SUVs on the continent. The Chinese technology group closed Friday at EUR 2.93, a level that leaves the stock down 32% since the start of the year and 55% beneath its 52-week high.

The dealer roster includes Emil Frey Deutschland, Ernst Dello, Hahn Automobile and LUEG Mobility, among others. Tying up with established forecourts is intended to give buyers immediate access to existing workshops and servicing from day one — widely seen in the industry as a prerequisite for winning European acceptance of an unfamiliar marque. Xiaomi is thus steering clear of a direct-sales-only model in a market known for fierce competition and heavy administrative demands.

Two SUVs, British Styling and a Chinese Price Tag

At the heart of the vehicle rollout are two battery-powered family SUVs. The Skynomad N70 measures 4.96 metres in length, while the seven-seat Skynomad N90 stretches to 5.28 metres. Both take visual cues from British luxury off-roaders.

Pricing at home is modest by comparison: Chinese media put the Skynomad N70 Pro at roughly EUR 25,000. European stickers are expected to run noticeably higher once tariffs, certification and freight are added.

A Foldable That Undercuts Huawei

On the handset side, Xiaomi has unveiled the 18 Fold, the priciest foldable in its line-up and a direct challenge to established rivals in the fast-growing segment. Reuters reports a price band of 10,999 to 14,999 yuan, a deliberate gap below domestic competitor Huawei, which simultaneously showed a new top-end foldable starting at 19,999 yuan. The strategy is to place technically demanding hardware beneath the level of its main national rival, protecting share in high-margin premium devices and pulling new buyers toward the brand.

That premium drive coincides with a possible diplomatic opening. Executives could join a high-level Chinese delegation to the United States, with Reuters reporting Friday, citing three people familiar with the matter, that a company presence at President Xi Jinping's Washington visit is under discussion. The trip is set for 24 September, though the delegation's composition had not been finalised at that point. Such a platform could raise Xiaomi's visibility as it navigates regulatory hurdles abroad and intensifying technological competition at home.

India Inquiry and Cost Pressure on the Core Business

Not everything is expansion. More than a month ago, India's Serious Fraud Investigation Office recommended a detailed probe into Xiaomi's business model and its compliance with local foreign-investment rules. Media reports suggest the review could cover ownership structures, regulatory approvals and cross-border money flows. Xiaomi told Reuters it has so far received neither notice nor a formal request.

Closer to home, the consumer-electronics mainstay faces margin pressure from higher component costs, affecting devices in the Poco and Xiaomi ranges. Whether the European car venture delivers fresh momentum will hinge above all on how the market launch is actually executed.