SHANGHAI/BEIJING: China’s Xiaomi Corp (1810. HK) announced on Monday that it aims to deliver 130,000 electric vehicles (EVs) this year, marking its third upward revision of its forecast, following a 30.5% increase in third-quarter revenue.
CEO Lei Jun revealed via social media that the electronics company had raised its goal from a previous target of 120,000 deliveries for its debut EV, the SU7 sedan, driven by rising demand. This figure significantly surpasses its initial target of 76,000 units set when the SU7 was introduced earlier this year.
Launched in March, Xiaomi’s SU7, inspired by Porsche’s design, entered China’s competitive EV market with a starting price of under $30,000—about $4,000 less than Tesla’s (TSLA.O) Model 3 base model in China.
Sales of EVs and plug-in hybrids in China have surged, now accounting for over half of total vehicle sales in the world’s largest automotive market. In October alone, EV sales grew by 56.7% year-on-year, marking the fourth straight month where battery-powered vehicles, including plug-ins, surpassed gasoline-powered car sales.
To meet rising demand, the firm has doubled its production shifts since June and introduced a premium SU7 Ultra model priced at over $110,000.
During a post-earnings call, Xiaomi President Lu Weibing stated that the factory’s monthly production capacity had reached 20,000 cars, with room for further expansion.
“Our investment remains substantial, and we continue to enhance our hardware and software. Regardless of our final delivery numbers, we are heavily focused on R&D for new models,” he said. Lu also noted that Xiaomi is investing in autonomous driving technology.
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For the quarter ending Sept. 30, Xiaomi’s revenue totaled 92.5 billion yuan ($12.77 billion), surpassing an LSEG consensus estimate from 15 analysts of 91.1 billion yuan.
Huatai Securities projects that Xiaomi will deliver 400,000 EVs in 2025, with electric cars expected to contribute roughly 20% of revenue compared to 8% this year.
However, Xiaomi’s auto division is still operating at a loss, reporting an adjusted quarterly loss of 1.5 billion yuan and a gross profit margin of 17.1%.
During the same period, Xiaomi maintained its position as the world’s third-largest smartphone maker, with shipments of 42.8 million units—a 3% increase, capturing 14% of the market, according to research firm Canalys.
Lu said Xiaomi plans to expand its offline retail stores in mainland China from 13,000 to 15,000 by year-end and further to 20,000 next year, while making significant investments in technology to boost market share.
Xiaomi’s adjusted net profit rose 4.4% to 6.25 billion yuan, surpassing a consensus estimate of 5.92 billion yuan.
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