Xiaomi already on their way to Europe!

For a young Chinese manufacturer like Xiaomi, selling cars in Europe requires an infrastructure for both pre-sales and after-sales services.

According to CarNewsChina, Xiaomi has taken a first step in this direction by forming a partnership with Hyperion Leasing to export its electric vehicles to strategic international markets. While the company initially planned to focus solely on the Chinese market before considering export, this collaboration seems to accelerate its global ambitions.

Hyperion Leasing, a subsidiary of the Chinese state-owned group Sinomach, is a major player in the industry with 160,000 employees and a presence in 170 countries. On February 10, Sinomach announced that its subsidiary would work with Xiaomi to develop international cooperation in key markets, although these markets have not yet been specified. Hyperion will be responsible for exporting, maintenance, and technical support of Xiaomi vehicles abroad. It sounds so simple when you put it like that!

China too narrow for Xiaomi

In China, Xiaomi sells the SU7 sedan, a model launched in March 2024. This vehicle has been a real success with 139,487 units sold last year, despite delivery delays of 5 to 8 months and precarious profitability. To meet increasing demand, Xiaomi is putting the final touches on a new factory that will increase its production capacity and enable the launch of a second model, the YU7, an electric crossover.

Initially, Xiaomi did not plan to export its cars before 2030. However, the success of its models appears to have altered its plans. It’s important to keep in mind that generous public subsidies allow Xiaomi to sell its cars at a loss at prices well above market levels. Exporting could offer much higher margins. For example, BYD quadruples its profits on sales in Europe compared to China.

Hyperion has a significant presence in Russia, which could become Xiaomi’s first export market. Anecdotally, 150 Xiaomi SU7 units have already been sold in Russia. The extensive international reach of its parent company, Sinomach, could facilitate future expansion into the European market.

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