Xiaomi’s revenue rises as electric vehicle sales soar

• Published On: 19 November 2024 at 12:06

Xiaomi, the Chinese electronics giant, reported a 30.5 percent growth in third-quarter sales, driven by high consumer demand for its first electric vehicle, the SU7 sedan.

The company, which is best known for its smartphones and digital products, introduced the car in March, entering China's competitive electric vehicle industry with a bold price approach. The SU7's base model costs less than $30,000, making it $4,000 less expensive than Tesla's Model 3 in China.

The popularity of the SU7 has encouraged Xiaomi to lift its annual sales target to 130,000 EVs, a huge increase from its original goal of 76,000. To fulfill demand, Xiaomi has increased production by doubling shifts since June and just debuted a more luxury variant, the SU7 Ultra, which costs more than $110,000.

Xiaomi reported third-quarter sales of 92.5 billion yuan ($12.77 billion), beating analyst projections of 91.1 billion yuan. Despite the success of its EV business, the company's auto segment continues to lose money, reporting an adjusted loss of 1.5 billion yuan for the quarter. However, the unit's gross profit margin is 17.1%.

Looking ahead, Xiaomi is placing a significant stake on its auto industry. Huatai Securities predicts that the company will supply 400,000 EVs by 2025, with electric vehicles accounting for 20% of total revenue, up from 8% this year.

In addition to its great performance in the EV division, Xiaomi retained its position as the world's third-largest smartphone manufacturer. Canalys reported that the company shipped 42.8 million smartphones in the third quarter, accounting for 14% of the global market.

Xiaomi's adjusted net profit for the quarter increased by 4.4% to 6.25 billion yuan, exceeding analysts' consensus of 5.92 billion yuan.