Chinese electronics giant Xiaomi reported a 30.5 per cent increase in third-quarter revenue, fueled by strong consumer demand for its first electric vehicle, the SU7 sedan.
The company, traditionally known for its smartphones and tech gadgets, launched the car in March, entering China’s competitive electric vehicle market with a bold pricing strategy. The base model of the SU7 is priced under $30,000, which is $4,000 cheaper than Tesla’s Model 3 in China.
The success of the SU7 has prompted Xiaomi to raise its sales target for the year, aiming to deliver 130,000 EVs, significantly higher than its original goal of 76,000. To meet demand, Xiaomi has increased production by doubling shifts since June and recently introduced a more premium version, the SU7 Ultra, priced at over $110,000.
For the third quarter, Xiaomi posted revenue of 92.5 billion yuan ($12.77 billion), exceeding analyst expectations, which had forecasted 91.1 billion yuan. Despite the success of its EV business, the company’s auto division is still operating at a loss, with an adjusted loss of 1.5 billion yuan for the quarter. However, the unit has a gross profit margin of 17.1%.
Looking ahead, Xiaomi is betting big on its auto business. Huatai Securities projects the company will deliver 400,000 EVs by 2025, with electric cars accounting for 20% of its revenue—up from just 8% this year.
In addition to the strong performance in its EV division, Xiaomi maintained its position as the world’s third-largest smartphone maker. The company shipped 42.8 million smartphones in the third quarter, capturing 14% of the global market, according to Canalys.
Xiaomi’s adjusted net profit for the quarter rose by 4.4%, reaching 6.25 billion yuan, surpassing analysts’ consensus estimate of 5.92 billion yuan.
