Xiaomi's Electric Vehicle Ambitions Accelerate with Strong Demand

Xiaomi's auto division gains rapid traction with 40k+ SU7 orders, targeting 550k deliveries in 2026 to achieve scale-driven profitability in the competitive EV market.

Xiaomi's venture into the electric vehicle (EV) sector is demonstrating remarkable momentum, achieving a pace that stands out even within China's fiercely competitive automotive landscape. The company's updated SU7 model has secured over 40,000 firm orders just weeks after its market debut in March. This represents a formidable launch for a manufacturer that only began series production in 2024.

Scaling Production at a Breakneck Pace

The company's production figures chart a steep growth trajectory. Deliveries reached nearly 140,000 units in 2024, before surging to approximately 412,000 in 2025. For the current year, management is targeting 550,000 vehicle deliveries—a milestone that would position Xiaomi's auto division close to established volume manufacturers.

Operational execution has been a key strength. A mere four days elapsed between the official unveiling of the SU7 facelift and the commencement of customer deliveries. Despite its late-month launch, the updated model contributed to a total of over 20,000 vehicles delivered in March, with more than 7,000 units of the new version handed over. The facelift comes standard with LiDAR technology and offers improved range specifications. Furthermore, the next model, the YU7 GT, is already poised for release.

Market Signals and Investor Sentiment

Alongside its operational push, Xiaomi's management sent a clear signal of confidence to the market on April 2, repurchasing about 12.8 million of its Type-B shares for roughly HK$395 million.

Trading on the Hong Kong exchange during the first week of April, however, proved volatile, with the share price retreating by as much as 3.6% at times. Market observers point to profit-taking following a recent rally and rising memory chip costs as contributing pressures. This industry-wide issue is keeping a focus on margin development within the automotive segment.

Notably, strong institutional interest persists. Southbound Trading flows saw a net influx of HK$1.1 billion from mainland China into Xiaomi shares on April 2. The 550,000-unit delivery target is more than a sales goal for the company; it is viewed as a critical threshold where scale effects are expected to begin driving sustainable profitability for its automotive business.