Tech
Xiaomi’s Entry into the Electric Vehicle Market and Revenue Growth
How does Xiaomi’s entry into the electric vehicle market affect revenue growth alongside the brand’s innovative strategies and growth potential? Learn detailed information about the future of electric vehicles and Xiaomi’s role in this field.
Xiaomi’s Growing Influence and Entry into the Electric Vehicle Market
Xiaomi smartphones have a huge fan base in almost every region outside of the US. This China-based technology giant has achieved great success in recent years by offering high-quality smartphones at affordable prices, challenging leading brands in the industry.
In 2021, Xiaomi stepped into the electric vehicle (EV) market to expand its product range. While it initially seemed like a risky decision, the correctness of this strategy quickly became apparent. The company announced that its EV division had begun generating revenue for the first time. According to a report by Reuters, Xiaomi’s revenue for the second quarter of 2024 reached 88.9 billion yuan (approximately $12.46 billion), surpassing all forecasts with a 32% increase. Previous optimistic estimates had predicted that the company would earn around 85.8 billion yuan ($12.02 billion) in this quarter.
Xiaomi’s smartphone shipments reached 42.3 million units in the second quarter of the year, marking a growth of 27.4%, which raised the company’s market share to 14.8%. On the other hand, despite just entering the EV market, the automotive division contributed approximately 6.2 billion yuan ($869.2 million) to the company’s total revenue in the second quarter. The significant increase in revenue from the automotive sector in such a short time is seen as a promising sign for the future.
Xiaomi began offering the SU7 EV model to customers in April, with prices ranging from $30,800 to $42,000. The vehicle received great interest by garnering 88,898 orders just 24 hours after its launch. The company announced that it delivered 27,307 electric vehicles in the second quarter of 2024 and aims to deliver 10,000 electric vehicles each month. President Lu Weibing stated that he believes this unit will further develop with the increase in production. Xiaomi’s current target is to deliver 120,000 electric vehicles by the end of the year.