Xiaomi's Auto Unit Clears 40,000 Monthly Deliveries as HSBC and Citi Back the Stock

Xiaomi shipped over 40,000 EVs in September and more than 286,000 in the first nine months of 2026, as Citi and HSBC both rate the stock a buy.

Xiaomi's electric-vehicle business has crossed a symbolic threshold, with September deliveries topping 40,000 units, according to Reuters. The Chinese technology group shipped more than 286,000 EVs to customers between January and September, underscoring how quickly the car unit has scaled since its launch.

That momentum has not gone unnoticed on the sell side. Citi reiterated its buy recommendation on Xiaomi shares with a price target of 34 HKD, citing the September delivery figure explicitly. HSBC, meanwhile, initiated coverage roughly a week ago with a buy rating and a target of 33,20 HKD, framing the current year as a transition period weighed down by the smartphone business. The bank expects profitability to recover from the fourth quarter onward, helped by new flagship handsets and future vehicle generations.

A New Model Line Lifts Volumes

Part of September's shipment growth traces back to a freshly introduced model series, which notched more than 10,000 deliveries in its first month of sales. Xiaomi has been positioning the automotive division as a second growth engine alongside its legacy consumer-electronics and mobile-device operations, which continue to supply the bulk of group revenue. A smooth ramp-up of new models matters beyond headline volumes — it signals that manufacturing capacity is being put to work.

The company is also pushing deeper into software and artificial intelligence. On 22 September it opened the MiMo-V2.6 model family, including the Pro and Flash versions, to outside developers as open source, aiming to widen access to its in-house AI models and spread them across its own ecosystem. A day later, on 23 September, Xiaomi unveiled the HySparse2 AI architecture for its MiMo-V3 model, which the company says will accelerate so-called long-context agents and ease computationally heavy tasks tied to complex control and voice functions on connected devices.

Hardware ambitions extend beyond cars. On 27 September the group launched its S60 robot vacuum series worldwide, reinforcing a home-appliance lineup that has long stood as a pillar of the product portfolio next to smartphones.

Smartphone Margins Remain the Drag

For all the attention on EVs, handsets still drive earnings — and that is where the pressure sits. Rising component costs, particularly for memory chips, are squeezing margins in the third quarter, according to media reports.

The stock has yet to reflect the diversification story. At a current price of 2,75 EUR, the shares are down 37% since the start of the year. In the latest session the paper traded at 2,74 EUR, a modest decline of 0,3%, with little movement across European venues. Asian technology names, Xiaomi included, had come under pressure after a holiday break in Hong Kong left the market without direction.

Investors now look to further sales data on the Pengcheng model line for the next read on operating momentum.