Shifting gears from phones to cars, Xiaomi is eyeing Europe by 2027 with booming EV sales, narrowing losses, and a bold bid to rival Tesla and BYD.
Chinese tech giant Xiaomi plans to launch its first electric vehicle in Europe by 2027, setting the stage for a direct challenge to Tesla and BYD in the global market. The move comes as the company accelerates its transition beyond smartphones and into the fast-growing electric mobility space.
According to a Bloomberg report, Xiaomi’s president Lu Weibing outlined the expansion plans following the release of its quarterly results, which showed a 31% increase in revenue to 116 billion yuan ($16.2 billion).
The growth was driven by the successful debut of its second EV, the YU7 sport utility vehicle, launched in June. Strong demand has pushed waiting times for the SUV to over a year.
In the June quarter, Xiaomi delivered 81,302 cars, bringing first-half deliveries to more than 157,000. The company remains on track to exceed its 2024 sales total. Losses from the EV division narrowed to around 300 million yuan, with co-founder Lei Jun earlier predicting profitability in the second half of the year.
While EV momentum builds, Xiaomi’s smartphone business continues to struggle. Shipments slipped 2.1% in the latest quarter, missing analyst expectations by around 5%. The company expects only modest growth in this segment but aims to expand its market share in China by 1% annually.
Xiaomi has added nearly $120 billion in market value over the past year, propelled by its $10 billion investment in EVs. This growth has come despite stiff competition, production bottlenecks, and regulatory scrutiny after a fatal accident involving its SU7 sedan in March.
Europe, already a key destination for Chinese EV makers such as BYD, offers Xiaomi both opportunity and risk. Governments are encouraging investment to counterbalance US tariffs, but price wars and tight margins remain a challenge across the industry.
