Xiaomi Steps Up Its EV Push with Factory Upgrades and a Big 2026 Goal

Xiaomi is winding down production of its first successful model, the SU7, but the move signals a strategic pivot rather than a retreat. The tech giant is retooling its factories for a sweeping expansion and has set a target of more than half a million vehicle deliveries in 2026. Can the company sustain such an aggressive growth trajectory?

Transition to the next generation in April

CEO Lei Jun confirmed late Monday that the first SU7 generation has reached its end. Since the model landed in markets in March 2024, roughly 370,000 units have rolled off the line. In the meantime, production lines are being reconfigured to accommodate the successor, with a launch slated for April.

The announcement stirred volatility in Xiaomi’s stock: after initial gains on Tuesday, shares on the Hong Kong Exchange closed down 1.56% on Wednesday. Investors are now weighing the outlook for the second-generation SU7, which brings lidar sensors, a reinforced body structure, and a range of up to 902 kilometers.

Key metrics
- Total deliveries (22 months): 600,000 vehicles
- Target for 2026: 550,000 units (+34% versus the prior year)
- January 2026 sales: 39,002 vehicles
- Export start: planned from 2027

Growth momentum accelerates

The group has carved out a foothold in China’s highly competitive EV market. In just 22 months, Xiaomi has delivered 600,000 electric cars. A key driver is the newer YU7 model, which has become the volume leader. In a six-month span, Xiaomi moved 150,000 units of the YU7—sales velocity that is twice as fast as the SU7’s pace.

For this year, the bar is set high. Reaching 550,000 deliveries requires sustained performance from the highly automated Beijing factory, which already achieved a monthly output of over 50,000 vehicles in December 2025.

Analysts see export potential

Industry watchers view the rapid model cycle as a mark of strength. Bernstein strategists see significant upside for the stock, particularly as the product cycle takes hold and overseas expansion begins in 2027. In addition to the upcoming SU7, there are plans for an Executive version SU7L and SUVs YU8 and YU9, all in the pipeline.

April represents the next crucial test for Xiaomi: a successful launch of the second SU7 generation will demonstrate whether the company can support its ambitious annual targets.

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