Xiaomi's EV European Expansion Confirmed, But Not Yet




Xiaomi EVs: European Horizons on the Rise, Patience Required
Xiaomi's Remarkable Entry into the Electric Vehicle Arena
Xiaomi Automobile has swiftly established itself as a formidable force in the electric vehicle sector, challenging the notion that only traditional automakers can succeed. This rapid ascent underscores the evolving nature of the automotive industry, where software integration and smart technology are becoming as crucial as mechanical engineering. The company's innovative approach, drawing parallels between the complexity of modern EVs and smartphones, has enabled it to make a significant impact in a remarkably short period, demonstrating its capability to adapt and innovate in a new domain.
Unprecedented Growth and Market Dominance in China
Since its foray into the BEV market approximately four years ago, Xiaomi has witnessed explosive growth. The introduction of its SU7 sedan last year marked a turning point, with an astonishing 200,000 units delivered in just 119 days, showcasing immense consumer enthusiasm. This success was quickly followed by the debut of the YU7 SUV, which, like its sedan counterpart, has become a highly sought-after model in China. The current extended waiting periods for both models, reaching up to 58 weeks, underscore the intense demand and Xiaomi's immediate challenge in meeting this overwhelming domestic appetite.
Strategic Prioritization: Addressing Domestic Demand Before Global Outreach
While the allure of international markets, particularly Europe, is undeniable, Xiaomi's immediate strategic focus remains firmly on its home ground. The company recognizes the critical importance of stabilizing supply chains and reducing delivery times in China before embarking on a large-scale global expansion. This prudent approach ensures that the brand maintains its reputation for efficiency and customer satisfaction, building a solid foundation from which to launch into new territories. The current supply constraints, while indicative of strong demand, highlight the need for careful planning and scaling of production capacities.
Europe on the Horizon: A Calculated and Phased Market Entry
Despite the current emphasis on the Chinese market, Xiaomi has clear intentions of entering Europe. William Lu, Xiaomi's president, recently affirmed these plans during an earnings call, indicating that the company is in the preliminary stages of research and preparation for this expansion. Acknowledging that while Xiaomi is a recognizable brand in Europe, its automotive segment is still relatively unknown, the company aims for a phased entry, likely within the next two years. This period will allow Xiaomi to thoroughly assess market dynamics, establish necessary infrastructure, and tailor its offerings to European consumer preferences.
Building Brand Recognition and Partnerships in Europe
Even before its official market entry, Xiaomi's automotive division is proactively building its presence and reputation in Europe. The SU7 Ultra's record-breaking lap time at Germany's Nürburgring circuit in June notably showcased its performance capabilities. This achievement, alongside a "far-reaching partnership" with the Nürburgring, including sponsored advertising, indicates Xiaomi's commitment to engaging with the European automotive community. The reported interest from established European automakers, such as Ferrari, further validates Xiaomi's rapidly growing influence and engineering prowess, paving the way for a strong reception upon its eventual European debut.
Financial Health and Future Outlook
Xiaomi's automotive venture is not just a technological success but also a financial one. The company's recent unaudited financial report revealed a substantial revenue of RMB 20.6 billion ($2.87 billion) from its BEV business in the second quarter of 2025, with impressive gross margins of 26.4%. These robust financial results provide a strong foundation for future investments in production expansion and international market penetration. While the current challenge lies in meeting the soaring demand, Xiaomi's strategic patience and solid financial standing position it well for a successful and impactful entry into the European electric vehicle market in the coming years.