Xiaomi's EV Deliveries Hit 40,000 in September, but Earnings Collapse Exposes Margin Strain

Xiaomi shipped over 40,000 EVs in September, but first-half profit dropped 37.6% and the stock is down 37% year-to-date.

Xiaomi's automotive push is gathering pace even as its bottom line deteriorates sharply. The Beijing-based technology group moved more than 40,000 vehicles onto the road in September, according to company statements released Thursday, with a newly launched model line contributing over 10,000 deliveries in its first month of sales. Cumulative shipments for the January-to-September stretch exceeded 286,000 units, based on media reports.

Those volume figures stand in stark contrast to the company's operating performance. In its interim report for the first half of 2026, Xiaomi disclosed an 8.4% revenue decline to RMB 208.1 billion. Period profit contracted 37.6% year-on-year to RMB 14.2 billion — a slump that underscores how heavily rising costs in the group's emerging growth verticals are weighing on the income statement. Fierce price competition in the EV arena is proving a persistent drag.

Hong Kong Selloff and Shifting Shareholder Register

Friday's trading session in Hong Kong added to the pressure. Xiaomi's stock fell 4% as rising US Treasury yields and a holiday-related absence of mainland capital inflows through the Stock Connect program soured sentiment toward technology names. The broader market offered little shelter: the Hang Seng Index dropped 2.6% and the Hang Seng Tech Index shed 2.3%. At the closing bell, the shares were quoted at EUR 2.72, down 1.1%.

BlackRock, Inc. also disclosed that its voting rights in Xiaomi had slipped to 4.98% as of September 22.

The retreat extends a bruising stretch for shareholders. Year-to-date, the stock has lost 37%.

HSBC Sees a Transition Year Ahead

Analysts are not uniformly bearish, however. HSBC initiated coverage of Xiaomi on September 30 with a "Buy" rating and a price target of HKD 33.20. The brokerage framed 2026 as a transition period during which elevated memory costs will squeeze profitability in the smartphone segment, while projecting a margin recovery the following year. HSBC also forecasts a 10% decline in smartphone revenue for 2026, accompanied by a marked drop in unit volumes.

Product Pipeline Keeps Rolling

Xiaomi is not standing still on the product front. At an autumn event on September 23, the company unveiled a slate of new hardware, including the Xiaomi 18 Pro smartphone series alongside fresh tablets, wearables, and smart-home devices. On the software side, the stable rollout of the HyperOS 4 operating system across the Chinese market is set to begin on October 15.

Founder, Chairman, and CEO Lei Jun has already flagged early traction for the new model range. More granular delivery data is expected on October 7.