Will Xiaomi sell its cars in Europe?

If it were solely up to us, we would push Xiaomi to invade Europe as quickly as possible. But we must remain realistic.

It’s no secret that Xiaomi EV, the automotive division of the sprawling Xiaomi group, is intensifying its efforts to establish itself in foreign markets. In a context where competition in China is becoming increasingly fierce, the company relies on a strategy of testing and adapting to gain market share abroad. According to the local media 36kr, Xiaomi plans to introduce small volumes of its vehicles in several regions to gauge market reactions and adjust its strategies accordingly. A somewhat cautious strategy, which may come as a surprise, but do they really have a choice?

This cautious approach reflects the enormous challenges faced by a relatively young automaker like Xiaomi. Developing a sales and maintenance network abroad is a formidable challenge. Although Xiaomi benefits from experience gained through its international electronics activities, creating a support infrastructure for electric vehicles requires significant resources and flawless execution. You don’t sell a car the same way you sell a smartphone, even if smartphone technology has nothing to envy from that of cars! It’s often said that an electric car is ultimately just a four-wheeled device around a latest-generation tablet. But prices are not the same, and after-sales service must keep up.

The company has begun recruiting specialists to strengthen its international team, with key positions such as market research, project management, and after-sales services. Meanwhile, its smart driving division is working to meet compliance requirements for features abroad, thus paving the way for the deployment of advanced technologies.

To support this expansion, Xiaomi EV will rely on its international division’s stores, which already operate more than 100 directly managed outlets worldwide. However, establishing a reliable maintenance network, a crucial element to ensure customer satisfaction, remains a real challenge.

Despite these difficulties, Xiaomi maintains clear ambitions. Its electric sedan, the SU7, launched in China last March, has already achieved impressive sales, with a target of 130,000 units for 2024. Meanwhile, a second model, the YU7 SUV, is scheduled for mid-2025.

Finally, Xiaomi’s experience in managing its electronics activities in international markets could offer a strategic advantage, although entering the high-end automotive segment will require a strong branding and innovation strategy to overcome its current lack of recognition.

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