Achieving sustained operational momentum for the first time, Xiaomi electric vehicle unit records a profitable quarter and signals growing market strength.
Xiaomi Corp reported its first quarterly profit from its electric vehicle business, marking a major breakthrough in the smartphone maker’s push into the competitive global EV market. The EV division posted a profit of 700 million yuan in the September quarter, swinging from a loss of 300 million yuan in the previous three months and helping Xiaomi more than double overall net income.
The milestone places Xiaomi among a select group of Chinese EV producers generating positive earnings, even as the broader industry faces slowing demand and intensifying price pressure. Xiaomi, which aims to become one of the world’s top five carmakers, is rapidly expanding production to compete with market leaders Tesla and BYD. The company plans to enter the European market in 2027.
Executives said on Tuesday that Xiaomi will meet its target of 350 thousand EV deliveries for 2026 this week, more than a month ahead of schedule. Strong demand for its first sports utility vehicle has boosted confidence in the strategy championed by co-founder Lei Jun, who predicted a shift to profitability earlier this year.
However, production constraints remain a concern. Some buyers continue to face waits of up to nine months due to limited supply, and executives warned that gross margins will moderate next year. Xiaomi delivered more than 40 thousand EVs in October, matching September levels and underscoring both strong demand and ongoing capacity limitations.
