Xiaomi’s EV Sales Exceed Projections in 2024

China’s Xiaomi is exceeding EV sales expectations, fuelling optimism for an accelerated timeline to reach profitability. The Chinese tech giant’s latest electric vehicle is outperforming projections, bringing it closer to breaking even despite offering a lower price point compared to Tesla’s Model 3.

 Xiaomi initially anticipated selling its SU7 electric sedan at a loss, but CEO Lei Jun recently indicated a gross profit margin of approximately 5% to 10% for the company’s automotive division. With a strategic focus on its electric vehicle initiative, Xiaomi has made substantial investments as Lei aims for the company to secure a position among the top five global automakers.

As of April 20, Xiaomi has garnered over 70,000 orders for the electric SU7 sedan, nearing its original annual delivery goal. The company now anticipates delivering 100,000 units of its new EV by year-end, following the SU7’s launch in late March at a price point approximately $4,000 below Tesla’s Model 3 and the commencement of deliveries.

Currently focusing on China, Xiaomi has made significant investments in its electric car project. Lei aims to position the company among the world’s top five automakers in the long run. During a recent investor meeting, Lei disclosed that Xiaomi will concentrate solely on the domestic market for the next three years. Highlighting Xiaomi’s existing presence in over one hundred countries, Lei emphasized the brand’s global reach and loyal fan base. He expressed confidence that Xiaomi’s entry into the global market will be a seamless progression when the time is right.

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