Xiaomi Increases EV Delivery Target Amid Rising Demand

Xiaomi Corp raised its 2023 electric vehicle (EV) delivery target to 130,000 units, marking the third increase this year due to rising demand. CEO Lei Jun announced the new goal on social media, up from the previous target of 120,000 SU7 sedans. This is a significant jump from the initial goal of 76,000 when the SU7 was launched in March.
The SU7, priced under $30,000, entered China’s competitive EV market with a price advantage over Tesla’s Model 3, which starts at $34,000. EV and plug-in hybrid sales now make up over half of all car sales in China, with a 56.7% year-on-year growth in October, continuing a trend of electric vehicles outselling gasoline cars for the fourth consecutive month.
To meet the surge in demand, Xiaomi has increased production shifts and introduced a premium model, the SU7 Ultra, priced over $110,000. The company’s factory now has the capacity to produce 20,000 cars per month, and further growth is expected. Xiaomi is also investing heavily in research and development, including autonomous driving technology.
In its earnings report, Xiaomi posted third-quarter revenue of 92.5 billion yuan ($12.77 billion), surpassing analysts' expectations. Despite the strong revenue, the auto division continues to operate at a loss, reporting a 1.5 billion yuan adjusted loss for the quarter with a gross profit margin of 17.1%.
Xiaomi’s smartphone business remained strong, maintaining its position as the third-largest global smartphone maker, with shipments of 42.8 million units. The company also plans to expand its retail network in China, aiming to increase the number of stores from 13,000 to 15,000 by year-end and to 20,000 by next year. Xiaomi expects its EV division to contribute 20% of revenue by 2025, up from 8% this year.