Xiaomi’s High-Speed Expansion in Electric Vehicles

Xiaomi (SEHK: 1810), the Chinese smartphone giant, has accelerated its push into the electric vehicle (EV) market with the launch of its second model, the SU7 Ultra, a premium sedan aimed at the luxury segment. This follows the debut of its first EV, the SU7, in March 2024, marking a significant shift for the tech company since announcing its entry into the sector in 2021. A third model, the YU7 SUV, is set to follow later this year.

The market has responded swiftly to Xiaomi’s EV ambitions. Analysts have significantly revised their expectations for the company’s EV division, with Visible Alpha consensus estimates now projecting EV revenues of CN¥31.8 billion in 2024—nearly three times the CN¥11 billion expected in March last year. Likewise, shipment forecasts have surged, rising from just 45,000 units projected in early 2024 to 134,000 as of March 2025.

Xiaomi has signaled plans to expand EV sales beyond China “within the next few years.” Analysts anticipate the segment will become a major revenue driver, growing from an estimated 9% of total revenue in 2024 to 42% by 2030.