Xiaomi plans to enter the European electric vehicle (EV) market in 2027, marking the first time the company has identified Europe as its initial overseas destination for its auto business. William Lu, or Lu Weibing, mentioned the plan during an earnings call yesterday, saying that research and preparations are underway to support the expansion.
The move follows early signs of testing in the region, with an SU7 Ultra model registered in Germany earlier this year. Xiaomi’s executives have reiterated that near-term efforts remain focused on meeting domestic demand, where production capacity is under strain and delivery wait times for its EV models have stretched as long as 58 weeks.
See also: Xiaomi Reports 30.5% Rise in Q2 Revenue on Strong EV Sales
In the second quarter of 2025, Xiaomi’s EV unit generated revenue of RMB 20.6 billion ($2.87 billion), supported by record deliveries of 81,302 vehicles. That figure was nearly triple from a year earlier and up more than 7 percent compared with the previous quarter.
The gross margin for Xiaomi’s innovative businesses, which include EVs and artificial intelligence, rose to 26.4 percent, while operating losses narrowed to RMB 300 million.
See also: Xiaomi YU7 Draws Strong Demand, but Wait Times Stretch Beyond a Year
Xiaomi has invested more than RMB 30 billion in its EV venture over the past three years and expects the unit to achieve profitability on a monthly or quarterly basis in the second half of 2025. Executives have said the company remains committed to ramping up production in China before shifting focus to overseas sales.
