A unit of Xiaomi has secured a 50-year lease on a 485,134-square-metre plot of land in Beijing for 635 million yuan ($88 million), the city’s planning regulator said Thursday, as the tech giant pushes forward with its smart electric vehicle (EV) expansion.
The new plot is located near the second phase of Xiaomi’s existing EV factory and will be used for a smart connected car and components project, according to Beijing’s municipal planning and natural resources commission. The land acquisition comes as the second phase of the EV factory, covering 531,130 square metres, nears completion. That project was awarded to Xiaomi Jingxi Technology for 842 million yuan in July 2024 and reached its final development stage in April.
The tender win positions Xiaomi as one of the few automakers in China currently approved to expand production capacity, at a time when much of the industry is facing excess supply and slowing growth.
Xiaomi, best known globally as the world’s third-largest smartphone maker, entered the EV sector last year with the launch of its SU7 sedan. The model has outpaced Tesla’s Model 3 in monthly sales since December, helping to accelerate Xiaomi’s automotive ambitions in the world’s largest auto market. On Wednesday, CEO Lei Jun said pre-launch interest in the upcoming YU7 SUV had surpassed that of the SU7, with wait times for some customers stretching up to 51 weeks.
The company has now raised its annual EV delivery target to 350,000 units, up from an earlier projection of 300,000. The YU7 is set to begin taking orders by the end of June, slightly ahead of its previously announced July timeline.