Xiaomi, the consumer electronics giant, has achieved a remarkable milestone in the electric vehicle (EV) market: delivering over 500,000 vehicles within just 19 months of launching customer deliveries. This rapid growth positions Xiaomi as a significant competitor in the increasingly crowded EV landscape, particularly within China—the world’s largest automotive market.
Accelerated Production and Sales Growth
Since April 2024, Xiaomi has aggressively ramped up production, exceeding its initial annual target of 350,000 vehicles well before the end of 2025. November alone saw over 40,000 units delivered, demonstrating sustained demand for its models. The company’s success hinges on two key vehicles: the SU7 sedan (launched in March 2024) and the YU7 electric crossover (available since June 2024). Production operates across two facilities, with the YU7 directly targeting Tesla’s popular Model Y.
Shortening Wait Times and Expanding Portfolio
Early production bottlenecks led to long wait times for customers—some exceeding 62 weeks for the YU7. However, Xiaomi has since streamlined production, reducing wait times to 32-38 weeks for the YU7, 6-31 weeks for the SU7, and 6-9 weeks for the high-performance SU7 Ultra. The landmark 500,000th vehicle delivered was a fully-equipped YU7 Max, priced at around $51,050, highlighting the premium options available.
Surpassing Tesla in Domestic Sales
In October 2025, Xiaomi’s retail sales of new-energy vehicles reached 48,654 units, surpassing Tesla’s domestic deliveries for the first time. The YU7 specifically accounted for 33,662 wholesale units, edging out the Tesla Model Y’s roughly 26,100 units. This marks a critical shift in market share, demonstrating Xiaomi’s growing influence within China.
Financial Performance and Future Expansion
Xiaomi Group’s Q3 2025 report shows total revenue of $16.0 billion, a 22.3% year-over-year increase. Revenue from its EV, AI, and innovation businesses totaled $4.10 billion for the quarter, with R&D spending reaching $1.29 billion. Xiaomi plans to invest over $4.23 billion in R&D for the full year, signaling a commitment to long-term technological development. The company has revised its 2025 delivery target to over 400,000 vehicles and is preparing for international expansion, starting with Europe in 2027. Test drives of the SU7 Ultra in Germany have already begun as part of this preparation.
Xiaomi’s rapid success in the EV market underscores the effectiveness of its integrated approach—combining software expertise from its consumer electronics division with automotive manufacturing. This strategy has resonated particularly with younger buyers, establishing Xiaomi as a formidable competitor in the global EV industry.
