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Xiaomi EV expansion and financial performance

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2026-08-25 05:55 UTC → 2026-08-26 03:28 UTC · added ~~removed~~

Xiaomi is navigating a period of significant focus on its electric vehicle (EV) expansion and financial performance. In July, the company delivered 31,267 vehicles, representing a nearly 10% decline from June and a 2.68% year-on-year increase. This brings its cumulative deliveries for the first seven months to 216,322, which is approximately 39% of its annual target of 550,000 units. To reach this goal, Xiaomi must average roughly 67,000 monthly deliveries for the remainder of the year. Model performance has been mixed; while the SU7 sedan saw a slight month-on-month recovery with 21,044 units, it was down 13.79% compared to the previous year. The YU7 SUV experienced a month-on-month decline of 28.63%, totaling 10,223 units. Meeting annual goals may depend on the performance of the new Sky Nomad product line in the extended-range electric vehicle segment. In its second-quarter 2026 financial results, Xiaomi reported total revenue of 108.9 billion RMB, a 9.9 percent increase over the previous ~~quarter, though this fell short of analyst expectations. Adjusted~~ quarter. While adjusted net profit was 6.2 billion RMB, a notable decrease from the 10.8 billion RMB reported during the same period last year. This 42.6% year-on-year profit decline was attributed to rising costs for memory and other key components, specifically DRAM and NAND chips driven by AI server demand. Recent some reports ~~on the Q2 2026 period further highlight these financial pressures, noting~~ indicate that net profit for the first half of 2026 ~~reportedly~~ fell by 37.6% ~~year-on-year. To counter declining volumes and~~ year-on-year due to rising component costs, specifically DRAM and NAND chips. To counter these pressures, the company is pursuing a ‘premiumization’ strategy, increasing its average selling price to 1,351 yuan to compete with high-end brands. Recent developments show Xiaomi is also moving toward greater vertical integration, announcing the start of mass production for internally developed smartphone processors produced in collaboration with TSMC to mitigate supply chain and geopolitical risks. While smartphone shipments saw a decline of 26.5% to 31.2 million units, the company saw regional success in Vietnam, securing a 21% market share with 34% year-on-year growth. Additionally, the electric vehicle and new initiatives segment grew 17.1% year-on-year to 24.9 billion yuan, with the smart vehicle business accounting for 23.9 billion yuan of that total.

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