More than just phones: Xiaomi's EVs bring nearly $3 billion in Q2

Xiaomi is proving it has serious ambitions in the car space. The tech giant's new electric vehicle division reported impressive financial results for the second quarter, showing that its entry into the crowded EV market is more than just an experiment.

In the second quarter, Xiaomi's EV business brought in $2.87 billion (RMB 20.6 billion). This is nearly a 14% jump from the first quarter and a 232% increase compared to the same period last year. The last number looks great until you realize Xiaomi only started selling the SU7 towards the end of Q2 2024.

Profitability in the car business, especially for a newcomer, is a tough mountain to climb, but Xiaomi is already showing positive signs. The gross margin for its "innovative businesses," which includes both electric vehicles and artificial intelligence, climbed to 26.4%.

That is a healthy improvement from the 23.2% margin seen in the first quarter. The division still posted an operating loss, but it shrank from RMB 500 million in the first quarter to RMB 300 million in the second, suggesting the company is on its way toward breaking even.

This financial success is a direct result of putting cars into customers' hands. During the second quarter, Xiaomi delivered a record 81,302 EVs. That's a decent 7% increase from the previous quarter and a huge 198% jump year-over-year. These results are mainly fueled by the company's first model, the SU7 electric sedan, which officially launched on March 28, 2024.

Not content to rest on the success of its sedan, Xiaomi expanded its lineup on June 26 and unveiled the YU7, its first electric SUV, with deliveries for this new model beginning on July 6. To support this growing family of vehicles, Xiaomi is growing its physical presence, and as of the end of June, the company had already opened 335 car sales stores across 92 cities in China.

Via