Xiaomi accelerates expansion with new EV factory in Beijing
Xiaomi is expanding its automotive operations. Following the success of the SU7 saloon, 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 expanding its automotive empire. The company has begun construction of its second electric vehicle factory in Beijing on a site covering approximately 53 hectares (about 131 acres), for which it paid 842 million yuan (approximately €5 million).
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 roughly 52 hectares (approximately 129 acres) - we read.
The decision to expand is a result of the success of the SU7 model, which, along with its 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 release 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 have 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 is the result of an investigation that revealed Beijing subsidises their production, giving Chinese "electrics" a price advantage in the European automotive market.
