Xiaomi is making significant strides in the electric vehicle market. Recall that the first models of the Chinese brand, from the Xiaomi SU7 series, were launched on March 28, 2024. However, production has rapidly accelerated, and demand has exceeded expectations. On November 13, Xiaomi crossed the 100,000 vehicle production mark (in 230 days). During the presentation of its third-quarter results, the manufacturer also indicates that its goal is now to deliver more than 130,000 Xiaomi SU7 vehicles by the end of the year. The initial goal was to sell 76,000 units in 2024.

New Goals and Achievements

This new goal is well within Xiaomi's reach. In October, the company exceeded 20,000 units delivered in a single month. Additionally, as Reuters' article reminds us, Xiaomi doubled its production teams in June. Financially, Xiaomi indicates that its automotive branch generated the equivalent of 1.2 billion euros in the third quarter. "In the third quarter of 2024, the gross profit margin of our intelligent electric vehicle and other new initiatives segment reached 17.1%," the manufacturer also states.

Production and Delivery

The rapid acceleration in production is a key aspect. From the initial launch to reaching the 100,000 production mark in just 230 days shows Xiaomi's efficiency. The goal of delivering more than 130,000 vehicles by the end of the year is an ambitious one, but with the current production and delivery rates, it seems achievable. The company's ability to meet and exceed these targets is a testament to its capabilities in the electric vehicle sector.

Financial Performance

The financial performance of Xiaomi's automotive branch is also impressive. Generating the equivalent of 1.2 billion euros in the third quarter indicates a strong start. The gross profit margin of 17.1% shows that the company is not only producing vehicles but also doing so profitably. This financial success provides a solid foundation for further growth and expansion in the electric vehicle market.

Other Business Activities

While focusing on the electric vehicle market, Xiaomi is also performing well in other areas. Its smartphone business is booming, generating the equivalent of 6.2 billion euros in the third quarter with a 13.9% annual growth. The company has shipped 43.1 million units during the quarter, with a 3.1% annual increase. Xiaomi is also successfully pivoting towards the premium category, with 20.1% of smartphones shipped in mainland China during the third quarter being premium models, representing a 7.9 percentage point annual increase. Additionally, the company is seeing significant growth in other activities such as connected devices and internet services.