Xiaomi's European EV Push Arrives With Its Share Price at a Bruising Low

Xiaomi's EV arm launches European site, plans 2027 sales push; SU7 sales top 700k, but shares down 31% YTD amid chip costs.

The road to Stuttgart runs through Munich, and Xiaomi is already mapping the route. The Chinese technology group's electric-vehicle arm has launched an international website and social-media presence, laying the groundwork for a European sales offensive that president William Lu has pencilled in for the third or fourth quarter of 2027. Dealership and distribution partners are being courted now, even as the company concedes that pricing, country selection and the final model line-up remain unresolved.

The vehicles earmarked for the continent — the SU7, SU7 Ultra, YU7 GT and a standalone EREV sub-brand called SkyNomad — represent a deliberate broadening of a portfolio that has so far leaned heavily on a single nameplate. That strategy has delivered historic volume: cumulative deliveries passed 700,000 vehicles by the end of July, with 381,000 of those accounted for by the base SU7 sedan. The flagship SU7 Ultra tells a less flattering story, however, with monthly sales collapsing from more than 3,000 units in March 2025 to just 64 by April 2026. Xiaomi's response has been to fit a substantially enlarged rear wing and chase a lap record at the Nürburgring-Nordschleife in an effort to reignite interest in the performance variant.

The timing of the European push is awkward. Nikkei Asia reports that Xiaomi, Oppo and Vivo have slashed their 2026 sales targets by roughly 30 percent, squeezed by rising input costs and component shortages. Memory-chip pricing has been particularly brutal: DRAM prices jumped 90 to 95 percent quarter-on-quarter, with NAND up 70 to 75 percent. That super-cycle has carved deep into the smartphone business, where Xiaomi's delivery volumes fell 26.5 percent to 31.2 million units in the second quarter of 2026, even as group revenue climbed to 108.9 billion yuan. The EV division contributed 23.9 billion yuan of that total, but adjusted net profit slipped to 6.2 billion yuan under the weight of heavy investment in AI infrastructure and electric mobility.

The company's counter-move in handsets is the Redmi Note 17 generation, unveiled on Friday for global markets. The range spans from a 4G version at 250 euros up to a 5G model at 380 euros, with the top-end Pro Max introducing a 10,000-mAh silicon-carbon battery and 100-watt fast charging. The mid-tier Redmi Note 17 5G, meanwhile, packs a 7,700-mAh cell, a Snapdragon 4 Gen 4 chip and HyperOS 3 atop Android 16. These are familiar battlegrounds for Xiaomi, which has long dominated the budget segment — a valuable anchor given that the global smartphone market contracted six percent to 272 million units.

Xiaomi has also been assembling local credibility for its automotive ambitions, staffing a Munich research and development centre with former BMW and Porsche engineers. The SU7 is already undergoing EU homologation, a signal that the 2027 timeline is more than aspirational. Test mules of the YU7 SUV and the SkyNomad EREV have been spotted, reinforcing the sense of a brand in rapid portfolio expansion mode.

The share price, however, reflects the strain of funding all of this simultaneously. The stock closed at 2.99 euros on Thursday, down 3.0 percent on the day, and has shed 17 percent over the past month. Year-to-date losses stand at 31 percent, leaving the shares 54 percent below the 52-week high of 6.54 euros reached in September 2025. A modest recovery of 7.5 percent since the second-quarter results were published has done little to shift the broader picture. FactSet's consensus price target of 3.74 euros, updated around two weeks ago, carries 18 "buy" and seven "overweight" ratings from 34 covering houses — though the data is already ageing.

Governance has added a footnote to the narrative: Liu Hao resigned as joint company secretary effective 18 August 2026, with no successor yet named. Investors now train their attention on the third-quarter numbers due 24 November, which should reveal whether EV momentum can keep accelerating and whether handset shipments have found a floor. For a company spending heavily on a European entry that will not generate revenue before 2027, the intervening months look set to test both patience and conviction.