Xiaomi Group released its Q1 2025 financial report yesterday. The report shows significant progress in its electric vehicle business, with 75,869 SU7 series vehicles delivered during the quarter. The company announced plans to expand production capacity, with cumulative deliveries of the S U 7 series now exceeding 258,000 units. Xiaomi’s first-quarter financial results for 2025 underscore the company’s rapid ascent in the electric vehicle (EV) sector, marking a significant milestone in its diversification beyond smartphones and consumer electronics. Xiao mi reported a record-breaking revenue of ¥111.3 billion ($ 15.48 billion), reflecting a 47% year-over-year increase in Q1 2025. Their adjusted net profit surged by 65% to ¥ 10.7 billion ($ 1.52 billion), surpassing analyst expectations and underscoring the robustness of their diversified business model.
Their core segments—smartphones, home appliances, and Internet-of-Things (IoT) products—continue to perform exceptionally, contributing over 80% of total sales. Notably, their smartphone division generated ¥ 50.6 billion in sales, an 8.9% increase, while their IoT and lifestyle products achieved a record ¥ 32.3 billion in revenue, up 59% year-over-year.
Accelerating Growth and Improved Financials
In Q1 2025, Xiaomi delivered 75,869 units of its S U 7 electric sedan, an 8.9% increase from the previous quarter. This brought the cumulative deliveries of the S U 7 series to over 258,000 units since its launch in March 2024 .
The smart EV and AI innovation segment generated total revenue of 18.6 billion yuan ($ 2.58 billion), with electric vehicle sales accounting for 18.1 billion yuan ($ 2.51 billion) . Despite an operating loss of 500 million yuan ($ 70 million), the average loss per vehicle decreased to 6,500 yuan ($ 903), a substantial improvement from the 45,000 yuan ($ 6,250) loss per unit in 2024 .
Xiaomi’s gross profit margin for the E V and AI segment stood at 23.2% in Q1 2025, up from 20.4% in the previous quarter . This improvement reflects the company’s efforts to enhance operational efficiency and scale production.
To meet the growing demand for their E Vs, we are expanding their production capacity. Their Beijing E V plant currently has an annual production capacity of 150,000 vehicles. A second phase with an additional 150,000-unit capacity is under construction. We have raised their 2025 delivery target to 350,000 units, reflecting confidence in their production capabilities and market demand.
A New Contender in the E V Market
Building on the S U 7’s success, Xiaomi unveiled its first electric S U V, the Y U 7, in May 2025. The Y U 7 has garnered significant attention, with customer interest reportedly three times higher than that of the S U 7 at a similar pre-release stage .
The Y U 7 is scheduled for official release in July 2025, with pricing expected to start around 245,900 yuan ($ 34,000), positioning it competitively against Tesla’s Model Y . The vehicle boasts impressive specifications, including up to 835 km (518 miles) of range and acceleration from 0 to 100 km/h (0 to 62 mph) in 3.23 seconds .
All variants of the Y U 7 are equipped with Xiaomi’s supervised autonomous driving system, Xiaomi HAD, featuring a comprehensive sensor suite and powered by an Nvidia DRIVE AGX Thor-U chip capable of 700 TOPS . The Y U 7 also offers a spacious interior, with a 678L rear cargo capacity that expands to 1,758L with the rear seats folded down, supplemented by a 141L front trunk.
Production Capacity and Expansion Plans
To meet the growing demand for its E V, Xiao mi is expanding its production capabilities. The company’s Beijing E V plant currently has an annual production capacity of 150,000 vehicles. A second phase is under construction, which will add an additional 150,000-unit capacity .
Xiao mi has raised its 2025 delivery target to 350,000 units, reflecting confidence in its production capabilities and market demand .
Overall Financial Performance
Xiao mi reported a 47% year-over-year increase in revenue to 111.3 billion yuan ($ 15.48 billion) and a 65% rise in adjusted net profit to 10.7 billion yuan ($ 1.52 billion) in Q1 2025 . The company’s smartphone business contributed 50.6 billion yuan in sales, an 8.9% increase, while its Internet-of-Things and lifestyle products segment generated a record 32.3 billion yuan in revenue, up 59% year-over-year .
Xiao mi’s strong financial performance has bolstered its market valuation, which has rebounded to about $ 170 billion, surpassing China’s largest E V maker, BYD . The company also announced a $ 7 billion investment over the next decade in chip design, underscoring its commitment to technological advancement .
Challenges and Outlook
Xiao mi’s strategic entry into the E V market, leveraging its expertise in consumer electronics and software integration, positions it as a formidable competitor in the automotive industry. The company’s focus on high-performance vehicles with advanced technology features, combined with competitive pricing, aims to capture a significant share of the E V market.
The upcoming launch of the Y U 7 S U V, with its impressive specifications and strong market interest, is expected to further solidify Xiao mi’s presence in the E V sector. As the company continues to expand its production capacity and invest in innovation, it is well-positioned to achieve its goal of becoming a leading player in the global electric vehicle market.
Despite its impressive growth, Xiaomi faces challenges in the competitive E V market. The company has dealt with safety concerns following a fatal S U 7 autopilot crash and accusations of misleading advertising, for which it has issued an apology . Additionally, Xiaomi must navigate intensified price competition from rivals like BYD.
Nevertheless, Xiaomi’s robust financial position, with over $ 15 billion in net cash and a $ 5.5 billion share sale earlier this year, provides a strong foundation for continued investment and growth . The company’s strategic focus on high-end products and technological innovation positions it well to compete in China’s dynamic E V market.
In summary, Xiao mi’s Q1 2025 results demonstrate the company’s successful entry into the E V sector, marked by strong sales of the S U 7 sedan and the promising launch of the Y U 7 S U V. With ongoing investments in production capacity and technology, Xiaomi is poised to become a formidable player in the global electric vehicle industry.