Xiaomi Auto Profitability: EV Business Achieves Milestone!

Xiaomi Auto Profitability. # Xiaomi Auto Achieves First Profitable Quarter: The EV Business is Now a Reality!

Hold on to your hats, Xiaomi fans! The latest financial report is causing quite a stir. Not only is Xiaomi on track to deliver a whopping 350,000 vehicle units this year, but their electric vehicle (EV) division, specifically the segment of “intelligent electric vehicles and other innovations”, has achieved something truly remarkable: its first-ever profitable quarter. This game-changing achievement for Xiaomi Auto proves the company is a force to be reckoned with in the EV market.

Xiaomi Auto’s Impressive Financial Performance

Between July and September 2025, this segment generated an operating profit of 700 million yuan (approximately $97 million USD). This significant jump from previous losses paints a picture of a thriving and increasingly profitable business. The details speak for themselves.

Key Financial Highlights:

• Segment Revenue (Automobile + AI): 290 billion yuan (+199% year-over-year)
• Automobile Revenue: 283 billion yuan
• Operating Profit: +700 million yuan (first time positive)
• Gross Profit Margin (Automobile): 25.5% (up from 17.1% in the same quarter last year)
• Q3 Deliveries: 108,796 vehicles (record high)

The Fast Track to Profitability for Xiaomi Auto

So, how did Xiaomi Xiaomi manage to achieve profitability so quickly? The company has highlighted several key factors that contributed to this impressive turnaround.

Profitability

Strategic Cost Management

• Component Cost Reduction: Xiaomi’s massive purchasing power and aggressive negotiations with suppliers have led to a drastic reduction in the cost of key components like batteries and power electronics.
• Manufacturing Efficiency: The Beijing factory is now operating close to its maximum capacity (over 300,000 units annually), significantly reducing unit costs.

Product Mix and Revenue Streams

• Xiaomi SU7 Ultra Impact: The introduction of the high-performance Xiaomi SU7 Ultra in March 2025, priced above 500,000 yuan, has contributed significantly to higher profit margins.
• Ancillary Revenue Growth: Revenue from accessories, insurance, financing, paid software updates, and charging services is generating high margins. For more about Xiaomi’s advancements, check out the Tech News section.

Expanding Infrastructure

Xiaomi’s commitment extends beyond just making great cars. The company is also heavily invested in creating a comprehensive sales and after-sales service network.

As of September 30th, Xiaomi boasts:

• 402 car sales stores in 119 Chinese cities
• 209 official service centers in 125 cities

The company plans to reach 500 stores by the end of 2025 and exceed 800 in 2026, reducing its reliance on direct online sales. This is a huge step and could be a reason that Xiaomi Ultra Club Expands to Guangdong Circuit.

A Message to the Market

Just a year and a half ago, when the first Xiaomi SU7 units were delivered in April 2024, many analysts predicted it would take years for Xiaomi’s automotive venture to become profitable. Now, Xiaomi Auto Safety: Lei Jun Defends Design & Safety is not only leading the sector’s growth but also generating quarterly operating profits with a gross margin (25.5%) that surpasses many traditional manufacturers and is rapidly approaching Tesla’s best quarters in China.

What to Expect in 2026

With profitability secured, Xiaomi has the green light to:

• Further increase production capacity (plans for a Phase 2 of the Beijing factory to increase capacity to 450,000-500,000 units annually are underway).
• Launch new models with even higher margins (including a future high-performance sedan and a rumored entry-level model priced below 150,000 yuan).
• Accelerate international deployment (while 2026 will primarily focus on China, homologation tests are already underway in Europe and several Southeast Asian countries). We are excited to see the evolution of Xiaomi Xiaomi Pad!

In short, Xiaomi has transformed from “the phone manufacturer that started making cars” into one of the few EV manufacturers worldwide that combines hyper-growth, technological leadership, and operational profitability in record time. Learn about how Xiaomi aims to lead with products like the Xiaomi 12 kg Washing Machine: High Efficiency for Smart Homes. And the most impressive thing? This is just the beginning, which proves why Huawei vs Xiaomi: Identical Success Strategies Revealed.

In conclusion, Xiaomi’s rapid ascent in the EV market is nothing short of remarkable. Achieving profitability in such a short timeframe is a testament to their strategic cost management, product innovation, and expansion of infrastructure. The company’s focus on high-margin models and ancillary revenue streams has further solidified its position as a leading player in the industry. With plans to increase production capacity, launch new models, and expand internationally, Xiaomi is poised for continued growth and success in the years to come.