Xiaomi's Buyback and 40,000 EV Deliveries Meet a 36% Year-to-Date Slide

Xiaomi closed at EUR 2.76, down 2.8%, as Hong Kong tech sold off; the company repurchased 4.11 million Class B shares and reported over 40,000 September EV deliveries.

Xiaomi's stock closed Friday at EUR 2.76, down 2.8% on the session, as a broad selloff in Hong Kong technology shares weighed on the Chinese electronics and EV maker. Rising US Treasury yields, mounting concerns over higher energy prices, and stubborn inflation all sapped investor risk appetite. The picture was made worse by holiday closures on mainland exchanges, which cut off the usual capital inflows through southbound trading channels.

Management moved quickly to counter the weakness. Xiaomi repurchased 4,112,000 Class B shares on the Hong Kong exchange Friday, executing the transactions at prices between HK$23.98 and HK$24.26 apiece. The buyback totaled roughly HK$99.238 million — a clear signal of confidence in the company's own valuation after the stock posted a 36% decline since the start of the year.

EV Deliveries Cross 40,000 as Manufacturing Scales Up

On the operational front, the automotive unit is gathering pace. Xiaomi Auto reported more than 40,000 vehicles delivered for September 2026 on Thursday, underscoring how quickly the company is ramping up production capacity in the electric mobility market. The announcement did not include an exact total or a breakdown of sales by model.

Behind the scenes, Xiaomi is working to keep costs in check as it builds out the car business. According to media reports, the company is leaning on a partnership with supplier Harbin Dongan Auto Engine, a subsidiary of the Changan group, for range extenders used in its Skynomad model line. Those units cost USD 1,100 each and are based on Mitsubishi gasoline engines. Sourcing standardized drivetrain components this way spares Xiaomi the expense of in-house development and helps stabilize margins in the notoriously margin-sensitive vehicle segment.

Premium Smartphones Hold Their Ground in a Shrinking Market

In its core devices business, Xiaomi seized the top spot in China's Android segment during the launch window of its new smartphone generation. Data from Digital Chat Station showed the Xiaomi 18 series notched roughly 203,000 device activations in its first week on sale, beating the combined figures of domestic rivals Oppo and vivo.

That premium-segment win landed in a difficult market. While about 45% of sales went to models with 16 gigabytes of RAM, activations across all three leading Chinese manufacturers tumbled 60% to 70% year over year. Higher costs for processors and memory chips are widely seen as the main culprit, pushing up entry-level prices and prompting customers to hold onto their devices longer.

Against that pressure, management is pushing ahead with its ecosystem strategy, linking mobile devices, software, and connected platforms as the group's central point of differentiation. The stable release of HyperOS 4 is set to begin rolling out in China on October 15, starting with Xiaomi 17 models and the Redmi K100 Pro. No official timeline has been set for international markets.

Global Rollout Presses On Across Price Tiers

Xiaomi is broadening its international hardware footprint at the same time. The POCO C95 Pro launched in several eurozone countries at an entry price of EUR 199, with the regular base price set at EUR 219 in most European markets. In India, the Redmi 17C 5G arrives on October 7, keeping pressure on competitors in the volume segment. In Nigeria, the company unveiled the Redmi Note 17 smartphone series on Wednesday, fielding four different models, and media reports point to an imminent launch in South Africa, with an official sales start slated for October 8.

Institutional investors are taking notice. HSBC initiated coverage of Xiaomi on Wednesday with a "Buy" rating and a price target of HK$33.20. Even so, the analysts flagged persistent challenges in the traditional devices business, forecasting that Xiaomi's global smartphone revenue could fall 10% in 2026.

For shareholders, the question now is whether cost discipline across its growth ventures will be enough to offset the margin weakness weighing on the broader market.