Xiaomi raises EV targets after sales grow fastest since 2021

Xiaomi raises EV targets after sales grow fastest since 2021

  • 19.03.2025 02:55
  • cnbctv18.com
  • Keywords: Xiaomi, EV Market

Xiaomi raised its 2025 EV target to 350,000 units after record revenue growth, reflecting progress in China's EV market. Despite limited capacity and long wait times, the company is expanding production and planning new models like an SUV for summer competition with Tesla, aiming to boost global presence beyond smartphones.

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Estimated market influence

Xiaomi Corp.

Xiaomi Corp.

Positivesentiment_satisfied
Analyst rating: Buy

Xiaomi raised its EV target to 350,000 units after achieving fastest revenue growth since 2021. It has expanded production capacity and is planning further expansion.

Tesla Inc.

Negativesentiment_dissatisfied
Analyst rating: N/A

Dominant player in the EV market, which poses competition to Xiaomi's growth.

Context

Xiaomi Raises EV Target Amid Strong Sales Growth

  • 2025 EV Delivery Target: Xiaomi increased its 2025 electric vehicle (EV) delivery target to 350,000 units, reflecting strong progress in the Chinese EV market.
  • Revenue Growth: The company reported a 49% year-over-year rise in revenue for the December quarter, reaching 109 billion yuan ($15.1 billion).
  • Production Expansion: Xiaomi is expanding its EV production capacity, with plans to build out the second phase of its car factory in Beijing.
  • Challenges: Despite growth, the company faces limited capacity, leading to extended wait times for customers.

Competitive Landscape

  • EV Market Dominance: Competing against larger players like Tesla and BYD, Xiaomi aims to establish itself as a significant EV manufacturer.
  • New Model Launch: An upcoming SUV model will debut in summer 2024 to challenge Tesla’s Model Y, testing customer demand.
  • Global Expansion: Long-term plans include expanding overseas starting in 2027.

Market Performance and Strategy

  • Stock Valuation: Xiaomi’s shares have surged, making it more expensive than larger Chinese internet rivals like Alibaba and Tencent.
  • Diversification: The company is diversifying beyond smartphones and home devices to strengthen its position in a stabilizing global market.

Smartphone Business Insights

  • Handset Shipments: Xiaomi’s smartphone shipments increased by 4.8% year-over-year last quarter, according to IDC.
  • Market Share Gains: The company gained market share from Apple and Samsung as the global smartphone market continues its recovery.
  • Historic Milestone: Chinese smartphone vendors achieved a 56% share of global shipments in the December quarter, marking a historic milestone.

Strategic Considerations

  • Production Capacity Expansion: CFO Alain Lam emphasized the need to expand production capabilities by adding new sites to meet demand.
  • Long-Term Goals: Xiaomi aims to grow beyond its traditional businesses and establish itself as a major player in both smartphones and EVs.