Xiaomi electric car profit in first quarter, target 350,000 cars by 2026
Xiaomi EV reported a profit of 700 million yuan in the third quarter, reversing from the previous quarter; the company aims to deliver 350,000 vehicles in 2026 and plans to launch sales in Europe from 2027.
Xiaomi’s electric vehicle unit posted its first quarterly profit: 700 million yuan ($98 million) in the third quarter, reversing a 300 million yuan loss in the previous quarter and helping the group’s net profit double. This is a milestone for the smartphone maker’s automotive ambitions in the highly competitive Chinese market, according to Bloomberg.
Profit milestones and execution messages
The profitable results put Xiaomi in the group of Chinese electric vehicle makers that have broken even. While it is still early days, it is a confirmation of the direction of co-founder Lei Jun, who predicted that the auto division would turn profitable this year. Xiaomi’s first SUV has received positive feedback and a large number of orders, giving initial sales a boost.
Delivery capacity and expansion plans
Xiaomi will reach its goal of delivering 350,000 electric vehicles by 2026 this week, a month ahead of schedule, executives said on November 18. The company is ramping up production to reduce lead times; some models still have lead times of up to nine months as demand outstrips supply. In October, Xiaomi delivered more than 40,000 electric vehicles, the same as the previous month.
In the international market, Xiaomi aims to start selling electric cars in Europe from 2027. In China, the company aims to compete directly with Tesla and BYD before expanding abroad.
The risk picture: competition, supply chains and smartphones
Some investors question the long-term outlook, citing fierce competition, safety concerns and factory delays. In the core smartphone space, the race with Apple is also putting pressure: Xiaomi launched a $630 iPhone 17 alternative in September to capture premium market share in China, but the iPhone accounted for about a quarter of smartphone sales in China last month, according to Counterpoint Research, while Xiaomi’s growth lagged Oppo.
The supply chain is also an unpredictable variable. Xiaomi said on November 11 that it expects a shortage of memory chips to push up mobile device prices next year; many other companies have also warned of a risk of shortages of this important component by 2026.
Impact on stocks
These factors have contributed to a negative performance for Chinese tech stocks in recent months. Xiaomi shares have fallen about 20% since May.
Key milestones and figures
| Indicators | Value |
|---|---|
| Electric vehicle segment profit in Q3 | 700 million yuan ($98 million) |
| Last quarter results | Loss of 300 million yuan |
| Delivery in October | More than 40,000 vehicles |
| Vehicle delivery target 2026 | 350,000 vehicles |
| Sales plan in Europe | From 2027 |
| Stock movements since May | About 20% off |
Short summary
Third-quarter earnings show Xiaomi’s EV business is on track in terms of scale and costs, but its ability to scale production, reduce lead times, manage supply chain risks and maintain competitiveness in the domestic market will determine how sustainable its growth momentum will be in the coming quarters.
