Xiaomi Tops 800,000 EV Deliveries as India Probe Looms and Washington Beckons

Xiaomi Auto has delivered over 800,000 vehicles since April 2024, as the group plans a 2027 European launch and weighs India fraud scrutiny.

Xiaomi's automotive unit has now handed over more than 800,000 vehicles to customers, a milestone confirmed by founder, chairman and CEO Lei Jun. The figure carries extra weight given how recently the business got off the ground: deliveries of Xiaomi Auto only began on 3 April 2024.

That ramp-up is set to extend well beyond China. On 3 September, at the IFA trade fair, the company signed letters of intent with eight German automotive retail groups — Emil Frey Germany, Ernst Dello Group, Autohaus Dinnebier, Hahn Automobile, LUEG Mobility Group, Fett & Wirtz, SPT Avior and Penske-Jacobs — laying the groundwork for distribution in Europe. The market launch of Xiaomi's own electric vehicles on the continent is targeted for 2027.

A Possible Seat at the Table in Washington

While Chinese technology firms have repeatedly run into regulatory headwinds abroad, Xiaomi may be handed a high-profile diplomatic stage. On Friday it emerged that senior executives are being considered for a spot in the business delegation accompanying President Xi Jinping's upcoming visit to Washington. According to Reuters, the possibility rests on accounts from seven people familiar with the matter. Such a trip would place Xiaomi in a visible role in economic contacts between Washington and Beijing.

Investors took the news in a friendlier mood to close the week, with the stock finishing Friday up 1.2% at EUR 2.93.

New Delhi's Fraud Office Weighs In

On one of its most important overseas markets, however, the company faces mounting obstacles. On 9 September it became known that India's Serious Fraud Office, in a government document, recommended a thorough investigation of Xiaomi's Indian operations. The allegations center on possible irregularities in the business model as well as questions over compliance with rules governing foreign direct investment.

Xiaomi rejected the accusations and stressed that it complies fully with local laws. Management also made clear the company has not received any corresponding notice from Indian authorities. Should the recommended probe be formally opened, the company could face protracted scrutiny of its local sales and corporate structures. The timing is delicate: India has ranked among Xiaomi's key overseas markets for years, yet it also sits at the center of recurring regulatory friction between local supervisors and Chinese technology providers.

Premium Push Meets a Rival's Countermove

In its core smartphone business, Xiaomi is pressing ahead with a shift toward higher-margin segments. On 7 September the group unveiled the foldable Xiaomi 18 Fold in its home market, a premium model priced between 10,999 and 14,999 Yuan depending on configuration. Domestic rival Huawei brought out a new foldable of its own at the same time, sharpening the contest for share in the high-priced tier ahead of further competitor launches.

The operating expansion and rapid cadence of new models have helped steady the shares. With the latest advance, the stock trades 25% above its 52-week low. How effectively the group can contain its regulatory risks in India and execute its ambitious European vehicle distribution plans will shape the months ahead.