Xiaomi’s Rapid EV Expansion Breaks Industry Expectations

Xiaomi has reached a major milestone in its rapidly expanding automotive division, surprising industry observers with the speed of its progress. The Chinese technology company, widely known for its smartphones and consumer electronics, announced that its 500,000th electric vehicle has rolled off the production line.

What makes this achievement remarkable is the timeframe: Xiaomi accomplished it in just one year and seven months of car manufacturing. For comparison, many established automakers with decades of experience require significantly more time to reach similar production volumes. Xiaomi, a newcomer to the automotive sector, has exceeded expectations in less than two years.

The company’s strong performance is largely driven by two key models. The SU7 sedan, launched in March 2024, quickly became a bestseller, while the YU7 SUV, introduced in June 2025, helped further accelerate sales. Together, these models have enabled Xiaomi to scale production at an impressive rate.

In its debut year, 2024, Xiaomi sold 135,000 vehicles. Momentum grew during 2025: between January and October, the company delivered 315,376 electric cars, including 108,796 units in Q3. This represents a 173% year-over-year increase, highlighting strong market demand and Xiaomi’s growing manufacturing capabilities.

Encouraged by this performance, Lei Jun, Xiaomi’s founder and CEO, has raised the company’s targets. Xiaomi now aims to surpass 400,000 vehicle deliveries by the end of 2025, up from its previous goal of 350,000. The newly produced 500,000th vehicle already has an owner and is expected to be delivered soon.

Beyond production and sales milestones, Xiaomi has also achieved profitability in its smart electric vehicle division for the first time. According to third-quarter results, the innovation division—which includes automotive operations—recorded a net profit of 700 million yuan (approximately 84 million euros). Out of 29 billion yuan in revenue, 28.3 billion came directly from car sales, demonstrating the central role of vehicles in Xiaomi’s broader business strategy.

Xiaomi SU7 Sedan

Despite these achievements, the financial market reacted cautiously. Xiaomi’s shares in Hong Kong fell by more than 2% after the announcement and have dropped 33% over the last two months. Investors appear concerned about competition in China’s EV market and the long-term sustainability of Xiaomi’s rapid growth. Even so, the company’s swift rise positions it as an increasingly influential player in the global EV industry.

Filed in Transportation. Read more about Electric Cars and Xiaomi.