Xiaomi predicted to sell 250,000 EVs in 2025

Goldman Sachs revised its sales forecast for Xiaomi EV, painting a picture of huge growth and profitability in the coming years. Goldman Sachs analysts, led by Timothy Zhao, now expect Xiaomi to sell 350,000 EVs in 2025 and - wait for it - 655,000 in 2026. A company that was selling phones and funky scooters two years ago has become an EV powerhouse.

Xiaomi's EV journey began with the launch of its first model, the SU7 sedan, in March 2024. Available in three versions – Standard, Pro, and Max – the SU7 is aimed at a wide range of budgets, with prices starting at RMB 215,900 (approximately $30,000) and going up to RMB 299,900 (around $42,000). The company followed up with the announcement of a high-performance variant, the SU7 Ultra, priced at RMB 814,900 (about $114,000).

Xiaomi's second EV, the YU7 SUV, will launch in mid-2025. The expansion into the popular SUV segment is expected to boost Xiaomi's EV sales. The company has also been actively investing in its production capabilities. A new plant in Yizhuang, Beijing, with an annual capacity of 300,000 vehicles, is expected to be fully operational by June 2025.

Goldman Sachs believes Xiaomi's "hero product" strategy of focusing on high-quality, feature-rich vehicles is the key to its success. The bank predicts that Xiaomi's EV business could reach profitability by 2026. This is an industry first, as many EV startups struggle to achieve profitability in the early years.

Xiaomi's ambitious EV plans are backed by one of the biggest investments in research and development. The company will spend RMB 13 billion (approximately $1.8 billion) on R&D in 2025.

Xiaomi faces stiff competition from established automakers and other EV startups, but its strong brand recognition, tech expertise, and aggressive expansion strategy position it as an important player in the EV market. If Goldman Sachs' predictions prove accurate, Xiaomi could soon become a household name in the EV world, just as it has in the smartphone industry.

Via