Xiaomi SU7 Increases Company’s Revenue by Billions of Dollars

“Veni, vidi, vichi”— said Julius Caesar. Or at least that’s what they say. “I came, I saw, I conquered,” is the translation. “I came, I saw, I sold,” Xiaomi could say now. We don’t know if anyone will dare to attribute this phrase to them in the future, but what they achieve with their Xiaomi SU7 is certainly worth it.

among the best. Here’s what Lei Jun, the company’s CEO, promised at the Xiaomi SU7 launch: “With hard work over the next 15 to 20 years, we will become one of the top five car manufacturers in the world.” Boom. The ambitions were certainly high from day one.

Whether this long-awaited position will be achieved or not is very difficult to predict. Logic dictates that it is extremely difficult for a new brand to surpass giants with decades of automotive history behind them, but we are experiencing what could be a turning point as electric vehicles grow and China supports them.

A product that will suitYes, it’s a single car, but everything we’ve seen about the Xiaomi SU7 suggests that the Chinese company’s electric sedan is a very well-rounded product. Its mechanical capabilities are on par with the best, and its software promises enviable autonomous driving.

It remains to be seen whether the good behavior shown in the videos can be replicated outside of China (a persistent problem among vehicles coming from there) and whether European consumers will be reluctant to buy a Xiaomi-made car. Their success will depend on eliminating the friction and offering a product that is on par with the Europeans.

First notice. What we do know for sure is that the Xiaomi SU7 is in its first months of existence. In July, it was already knocking on the doors of the 10 best-selling Chinese electric car manufacturers. And it was the newly created company that sold the most cars without any competitors.

It is important to remember that electric car sales are massive in China. It is the country that sells the most cars with this technology, but at the same time they live in the center of a huge competitive storm that is devouring companies that are going bankrupt.

For more. And as the data continues to come in, Xiaomi’s position remains firm. The company wants to be able to produce 150,000 electric vehicles by the end of the year. To give us a better idea: 54,421 electric vehicles have been sold in Spain in 2023.

The company is already considering expanding its operating hours and capacity. In five years, it expects to spend €10 billion on EV-related investments, with the goal of capitalizing on the wave of Chinese EVs that Counterpoint experts believe will dominate half of EV sales worldwide by 2027.

sweeping away. So far, this strategy seems to be successful. Despite the fact that the company is losing thousands of euros (losses amount to more than $8,000 per unit), according to Bloomberg They bring them record revenue growth.

Economic media note that revenues from sales of its products exceeded forecasts by 32%, amounting to about $12.5 billion in the second quarter of the year. Accordingly, the company’s shares have also grown by 16% since the car’s sales began.

All this prompted the company to raise the bar for deliveries. At the beginning of the year it was 100,000 units, at the end of 2024 the figure rose to 120,000 units. The fastest possible growth is necessary to reduce unit costs and, therefore, to be able to compensate for losses per unit sold.

excessive growth. Comrades The World of Xiaomi They repeated the sales data and included the image above in their information. Gross margins are currently 15.4%, so there is a lot of room to maneuver in reducing losses.

In the second quarter alone, Xiaomi has already managed to sell more electric cars than all those we added in Spain until July last year. In the second quarter, Xiaomi placed 27,307 units of its all-electric car on the streets. And there is already talk of a second car with an SUV body on the horizon.

Photo | Xiaomi

In Hatake | We already know how the Xiaomi SU7 Ultra wants to break all records: with V8s, the first engine created by Xiaomi Auto.