Xiaomi’s electric vehicle division has made significant progress, exceeding its production target of 200,000 units and delivering 350,000 units this year. The company’s first 100,000 units were produced in 229 days, while the next 100,000 units were delivered in just 119 days. The high demand for its products is evident, as over 10,000 binding orders were received for the top-of-the-range SU7 Ultra within two hours of its release.
The company’s founder and CEO, Lei Jun, announced on Weibo that Xiaomi EV has made progress in increasing its production capacity, leading to a 16.6% increase in its delivery target to 350,000 units. The company believes that its production capacity, not demand, will remain the limiting factor, as it continues to sell out its cars quickly.
The strong demand is also reflected in the company’s financial performance. In the fourth quarter, Xiaomi EV reported sales of 2.07 billion euros, a 71.5% increase from the previous quarter. The company was able to halve its net loss, from 1.5 billion yuan in Q3 to around 700 million yuan, and achieve a gross margin of 20.4%, an improvement from 17.1% in Q3.
In the full year 2024, sales from Xiaomi’s innovation business, including its electric vehicle division, totalled 32.8 billion yuan (4.17 billion euros), with 32.1 billion yuan (3.94 billion euros) attributable to the electric car division. This strong performance is a testament to the company’s success in the electric vehicle market, and its ability to meet growing demand.