Do you know how much Xiaomi loses on each car sold?
This page is translated from the original post "Savez-vous combien Xiaomi perd à chaque voiture vendue ?" in French.
- 29/05/2025 17:56
New gem of the electric automotive industry, Xiaomi is still losing money on its cars. But the trend is improving.
Xiaomi, well known for its smartphones, continues to make its way into the world of electric cars. In its financial report for the first quarter of 2025, the company announced that it delivered 75,869 units of its electric sedan SU7. A good figure, bringing the total deliveries to over 255,000 units since its launch.
But not everything is profitable yet. Xiaomi reported a revenue of 18.6 billion yuan (approximately 2.5 billion dollars) in its electric vehicle and artificial intelligence division. The vast majority of this sum comes from car sales, with a gross margin of 23%. Despite this, the brand lost about 70 million dollars in this segment. On average, each car sold in the first quarter thus cost the company about 900 dollars in losses.
It is still much better than last year, when Xiaomi was losing over 5,000 dollars per car! These losses can be attributed to heavy initial investments in its own factories and technologies.
You can’t make an omelet without breaking some golden eggs
Xiaomi’s president, Lei Jun, remains resolutely optimistic. He reminds that the company is still young in the automotive sector and that losses are normal at the beginning. According to him, with the increase in volumes, the costs per car will decrease, and the business should reach equilibrium, or even become profitable by the second quarter of 2025.
Another model is already generating a lot of excitement: the Xiaomi YU7, set for July. According to Lu, customer interest is three times higher than that recorded for the SU7 at the same stage. This new, more affordable model could start at 34,000 dollars, a competitive price compared to the Tesla Model Y.
Xiaomi seems to be well on its way to establishing itself in the world of electric cars… even though it still has a bit of a road to cover before making money.
ALSO READ: The Xiaomi YU7 buries the Tesla Model Y 2025 in range
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