Chinese technology company Xiaomi reported higher revenue from its electric vehicle business in the first quarter of 2026, although the division returned to an operating loss after achieving profitability in the second half of last year.
Xiaomi delivered 80,856 electric vehicles during the January-March period, up 6.6% from a year earlier. The company currently sells two models, the Xiaomi SU7 sedan and the Xiaomi YU7 sport utility vehicle, which was introduced in mid-2025.
The latest deliveries brought Xiaomi’s cumulative EV sales to nearly 500,000 units since the launch of its automotive business two years ago. By the end of 2025, the company had delivered a total of 411,082 vehicles.
Xiaomi reports its automotive activities under its “Smart EV, AI and Other New Initiatives” segment, which is primarily driven by electric vehicle sales. Revenue from the segment rose 6.9% year-on-year to 19.9 billion yuan ($2.8 billion), with vehicle sales accounting for 19.0 billion yuan and the remainder generated from after-sales services and other activities.
The company said the EV division recorded an operating loss of 3.1 billion yuan (about 400 million euros) in the first quarter, reversing the profits achieved in the third and fourth quarters of 2025.
The quarterly result followed a decline in vehicle deliveries compared with the previous two quarters, when Xiaomi delivered more than 100,000 vehicles in each period.
The EV division’s gross margin fell to 20.1% from 23.2% a year earlier. Xiaomi attributed the decline to lower delivery volumes of the premium Xiaomi SU7 Ultra, subsidies related to vehicle purchase taxes in China, and higher prices for key vehicle components.
Despite the quarterly loss, Xiaomi continues to expand its presence in China’s electric vehicle market. By the end of March, the company operated 490 EV sales outlets across 143 cities nationwide.
The company is also broadening its product lineup, including new entry-level and high-end variants of the Xiaomi YU7, which it expects will support future growth in sales and market presence.
Xiaomi entered the automotive sector in 2024 and has rapidly emerged as one of China’s fastest-growing electric vehicle manufacturers, leveraging its established consumer electronics ecosystem and brand recognition to expand into the competitive EV market.
