Xiaomi Auto has set a new record for speed and performance in the electric vehicle (EV) market. In just 230 days, the company delivered its 100,000th car, the Xiaomi SU7, shattering industry records and showcasing its rapid growth in the automotive sector. Alongside this achievement, Xiaomi Auto has significantly reduced its loss per vehicle, marking a pivotal moment for the company.
Q3 2024: A Record-Breaking Quarter for Xiaomi
The third quarter of 2024 was historic for Xiaomi, with a 30.5% year-over-year revenue increase, reaching 92.5 billion yuan ($12.8 billion USD). The company’s net profit also rose by 4.4%, amounting to 6.3 billion yuan ($0.9 billion USD). Xiaomi Auto contributed significantly to this growth, generating 9.7 billion yuan ($1.3 billion USD), which accounted for over 10% of the group’s total revenue.
Despite an overall loss of 1.5 billion yuan ($200 million USD) for Xiaomi Auto, the loss per car sold dropped to 38,000 yuan ($5,250 USD)—a notable improvement from Q2’s loss of 66,000 yuan ($9,100 USD) per vehicle.
Breaking Records with the Xiaomi SU7
Xiaomi’s 100,000th SU7 rolled off the production line on November 13, 2024, in a record-breaking 230 days. This pace outshines competitors like Aito (448 days), Nio (3 years), and Tesla (12 years). The SU7’s rising popularity, particularly the Max and Pro versions, has also increased the average selling price to 238,800 yuan ($32,900 USD).
Production has exceeded expectations, with monthly output reaching 20,000 vehicles, surpassing the factory’s initial capacity of 12,500 per month. This growth was achieved by adopting a double-shift work pattern, optimizing factory utilization.
Economies of Scale and Rising Profitability
The increased production rate has driven Xiaomi Auto’s gross profit margin to 17.1%, matching Tesla’s margin in Q3 2024. Economies of scale have allowed the company to lower its bill of materials (BOM) costs, paving the way for improved profitability. Xiaomi expects even better results in Q4, with production levels nearly matching the combined output of Q2 and Q3.
Xiaomi’s Vision for the Future
Xiaomi Auto is positioned for rapid growth, with an updated 2024 production target of 130,000 vehicles. According to Lu Weibing, President of Xiaomi Group, the automotive business is expected to achieve the fastest growth rate among all of Xiaomi’s divisions next year.
With 127 smart EV sales centers across 38 cities in mainland China, Xiaomi is expanding its footprint to meet growing demand. As the company continues to refine its production processes and expand its market reach, Xiaomi Auto is set to become a dominant player in the EV market.
