Xiaomi accelerates automotive growth with new Beijing factory
Xiaomi is expanding its automotive operations. Following the success of the SU7 sedan, the company is building a second electric car factory in Beijing and has raised its 2025 sales target to 350,000 vehicles. The company's profits increased by 90%, and shares reached record levels, according to "Bloomberg".
Xiaomi, previously known mainly for smartphone production, is broadening its automotive empire. The company has begun constructing its second electric vehicle factory in Beijing on a site covering approximately 53 hectares, for which it paid 842 million yuan (156 million CAD).
Production at the new plant will start by mid-year. According to a source familiar with the matter, Xiaomi also plans to add another plot of about 52 hectares.
The decision to expand results from the success of the SU7 model, which, along with the Ultra version, sold more than 200,000 units in less than a year. Xiaomi's CEO, Lei Jun, raised this year's sales target to 350,000 cars, and in the summer, the company will launch the YU7 sports SUV to compete with companies like Tesla.
Xiaomi's first factory has an annual production capacity of 150,000 vehicles, but the manufacturer is working on increasing its efficiency. The electromobility-related operations contributed to a 90% increase in the company's profits in the last quarter of 2024 and the highest revenue growth rate since 2021.
Xiaomi's shares quadrupled in a year, surpassing valuation giants such as Alibaba and Tencent.
In October, the European Commission imposed additional tariffs on electric cars imported from China. This action followed an investigation that revealed Beijing subsidizes their production, giving Chinese electric vehicles a price advantage in the European automotive market.
