Xiaomi Prioritizes EV Growth Over Profits

Xiaomi, known primarily for its smartphones and consumer electronics, has launched its first electric vehicle, the SU7 sedan, aiming to compete with industry leaders like Tesla and BYD. Despite initial losses, the company has reported brisk sales, delivering over 27,000 units in the second quarter alone, contributing approximately $898 million in revenue. Xiaomi's strategy focuses on growth over immediate profitability, with plans to invest $10 billion in its EV sector to secure a spot among the world's top five automakers within 15 to 20 years. The company anticipates increasing production capacity and reaching a sales target of 120,000 units by the end of the year. While the SU7 is currently sold only in China, Xiaomi plans to expand its offerings, including electric SUVs, by late 2025. The move is part of Xiaomi's broader ambition to replicate its smartphone success in the automotive market, despite facing significant losses and competition.