Xiaomi's Q1 results confirm electric car business is gaining momentum

There are no more doubts that Xiaomi is now making serious noise in the electric car market. The tech giant's jump into the EV world isn't just a side project; the latest financial results show the company is quickly becoming a real contender, even as the wider EV industry faces a bit of a slowdown. It seems making phones and making electric cars might have more in common than one would think.

The first quarter of 2025 was a telling period for Xiaomi's automotive ambitions. The company's electric vehicle division pulled in $2.5 billion (RMB 18.1 billion) in revenue. This was a great start, with an 11% increase from the fourth quarter of 2024. This kind of growth is interesting at a time when other manufacturers reported a slower pace in early 2025.

Apart from the revenue, the profitability signs are also encouraging. The gross margin climbed to 23.2 percent in the first quarter of 2025. That's up from 20.4 percent in the previous quarter. In simpler terms, Xiaomi is getting better at making money from each car and AI venture it sells. The operating loss shrank to $69 million (RMB 500 million) in Q1 2025, a big improvement from the $97 million (RMB 700 million) loss in the last quarter of 2024. While still a loss, the shrinking figure suggests Xiaomi is steering its EV ship toward calmer financial waters.

The star of Xiaomi's electric car show is undoubtedly the SU7 sedan. The company delivered 75,869 of these electric vehicles in the first three months of 2025. This figure represents an almost 9 percent jump from the 69,697 cars delivered in the fourth quarter of 2024. Since the SU7 first hit the streets, Xiaomi reports that cumulative deliveries have already reached over 258,000 units. That's a lot of new electric cars on the road from a brand that, until recently, was focused on what fits in your pocket, not what sits in your driveway.

Xiaomi officially unveiled its first electric car, the SU7, on March 28, 2024. It comes in three main versions: the Standard SU7 starts at RMB 215,900 (approximately $29,800), the Pro version at RMB 245,900 (around $33,950), and the top-tier Max model at RMB 299,900 (roughly $41,400). For those who feel a regular electric sedan isn't quite enough, Xiaomi also introduced the SU7 Ultra. Announced on February 27, 2025, this variant is essentially the SU7's outrageously powerful sibling with 1,548 horsepower on tap. This beast of an EV comes with a price tag of RMB 529,900 (approximately $73,150), and deliveries began sharply on March 2, 2025.

Xiaomi isn't a one-hit wonder, it debuted its second EV model, the YU7, on May 22, 2025 with the sales to start in July. To support its growing EV ambitions, Xiaomi has also been rapidly building out its physical presence with 235 car sales stores across 65 cities in China already operational.

Via