Xiaomi's EV business ends Q3 2024 with $1.3 billion in revenue
Xiaomi announced a remarkable $1.3 billion in revenue from its EV business in the third quarter of 2024, marking a 52.1% increase from Q2 2024. This surge in revenue is largely attributed to the successful launch and delivery of the Xiaomi SU7 series.
Xiaomi delivered 39,790 SU7 EVs between July and September, bringing the total number of deliveries to 67,157 units since its launch on March 28th. Those numbers are obviously higher now. The SU7 series, which comprises three variants – Standard, Pro, and Max – has quickly gained traction in the Chinese EV market. The average selling price of the SU7 in the third quarter was RMB 238,650 (approximately $32,800). That's a 4.4% increase from the second quarter, and is due to the growing popularity of the higher-end Pro and Max models.
Despite the impressive revenue figures, Xiaomi's EV business is still in its early stages and is currently operating at a loss. The company reported an adjusted net loss of RMB 1.5 billion ($206 million). Xiaomi remains optimistic about the future of its EV division. Its founder, chairman, and CEO, Lei Jun, announced an adjusted target of delivering 130,000 SU7 units by the end of 2024.
Xiaomi's EV success can be attributed to several factors. The company has leveraged its strong brand reputation and loyal customer base to gain a foothold in the competitive EV market. With such a big customer base, Xiaomi has simply focused on developing high-quality, technologically advanced EVs at competitive prices. It almost sounds easy.
It's not all plain sailing for Xiaomi. The company faces a lot of competition in the EV market from established automakers and other EV startups. Companies like XPeng and Nio have already established a strong presence in the Chinese EV market. XPeng reported RMB 8.11 billion ($1.1 billion) in revenue in the second quarter, while Nio reported RMB 17.45 billion ($2.4 billion). Both companies are expected to release their third-quarter results soon.
Xiaomi has a strong track record of innovation and a deep understanding of consumer technology. With its growing EV portfolio and ambitious sales targets, this is a company to watch. As of September 30th, Xiaomi had 127 showrooms in 38 cities across mainland China and still growing.
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