Xiaomi Corp. reported that its electric-vehicle division generated 20.6 billion yuan ($2.8 billion) in revenue in the second quarter of 2025, marking the first time the unit has surpassed the 20 billion yuan threshold. Including AI-driven innovation businesses, the segment contributed 21.3 billion yuan in total revenue.
The division delivered a gross margin of 26.4%, underscoring improving efficiency in a capital-intensive business. Still, the unit posted a 300 million yuan operating loss, reflecting Xiaomi’s continued heavy spending on scaling up production and technology.
Xiaomi’s rapid revenue growth in EVs puts it on a faster trajectory than many new entrants. By contrast, established Chinese players such as BYD and NIO took years before reaching comparable sales volumes. Tesla’s early quarters in China also showed prolonged losses before margins improved. Xiaomi’s ability to leverage its consumer-electronics ecosystem, particularly in software and AI — has given it a unique competitive angle in the crowded EV market.
Analysts say the results signal a turning point for the company. “Crossing the 20 billion yuan mark demonstrates Xiaomi’s EV unit is no longer a side bet — it’s becoming a core growth engine,” one industry analyst noted. The challenge ahead will be maintaining growth while navigating intensifying price competition in China’s EV sector.
Do you see Xiaomi emerging as a serious rival to Tesla and BYD in the global EV race?