Xiaomi has acquired a new land parcel in Beijing’s Yizhuang development zone, likely for the second phase of its electric vehicle (EV) factory project. The acquisition was made through an affiliate of Beijing-based Xiaomi, which won the bid for RMB 842 million ($116 million), according to an announcement by local natural resources authorities.
The deal, concluded on July 25, grants Xiaomi a 50-year lease for the 531,130 square meter site, located east of its existing EV factory. The land is designated for smart car and parts manufacturing.
Xiaomi officially entered the car-making industry on March 30, 2021, when it announced plans to establish a wholly-owned subsidiary for its smart EV business. By November 2021, the company had signed an agreement with Yizhuang authorities to build a factory with an annual production capacity of 300,000 vehicles, to be developed in two phases, each with a capacity of 150,000 units.
Xiaomi unveiled its first EV model, the SU7, on December 28, 2023. The electric sedan, resembling a Porsche, was officially launched on March 28, offering three variants—standard, Pro, and Max—priced at RMB 215,900, RMB 245,900, and RMB 299,900, respectively.
The SU7’s success was immediate, bolstered by Xiaomi’s strong brand presence in China and the influence of its founder, chairman, and CEO Lei Jun. “Customers who currently ordered the Xiaomi SU7 still have to wait about 30 weeks for delivery,” Xiaomi stated.
In June, Xiaomi SU7 deliveries exceeded 10,000 units, with similar numbers expected for July. The company recently gained independent qualifications to build vehicles, transitioning the manufacturing of the SU7 from BAIC Off-road Vehicle to Xiaomi itself.
