Xiaomi to Launch New Flagship EV Platform in H2; Delivers 80,856 Vehicles in Q1

During its Q1 2025 earnings call, Xiaomi Group disclosed plans to launch a large, innovative vehicle built on an entirely new platform in the second half of this year. The company confirmed that this model will not be named the Xiaomi YU9. President Lu Weibing stated that the vehicle is highly competitive and carries significant expectations. In Q1 2025, Xiaomi’s smart electric vehicles and other innovative businesses, including AI, generated RMB 19.9 billion in revenue, up 6.9% year-over-year. The segment reported an operating loss of RMB 3.1 billion, with a gross margin of 20.1%, down 3.1 percentage points year-over-year. This decline was primarily driven by purchase tax subsidies, lower average selling prices due to showroom vehicle sales, and rising costs related to battery storage. Xiaomi delivered 80,856 vehicles during the quarter, representing a 6.6% year-over-year increase but a 44.3% sequential decline. Sales of the YU7 model have declined for four consecutive months, falling from 39,089 units in December 2024 to 9,876 units in April 2025. In response, Xiaomi has introduced the YU7 Standard Edition to strengthen its product lineup. According to Lu Weibing, based on frontline sales feedback, 70% to 80% of customers who test-drove both the YU7 Standard Edition and the Tesla Model Y Rear-Wheel Drive ultimately chose the Xiaomi YU7 Standard Edition. Regarding the YU7 GT variant, more than half of buyers opted for the top-tier configuration priced at RMB 429,900. This version appeals to owners of the SU7 Ultra, prospective buyers originally interested in the YU7 Max, and owners of performance vehicles from brands such as BMW, Mercedes-Benz, and Porsche. On international expansion, Xiaomi Auto plans to begin entering overseas markets in Q3 or Q4 2027, following a strategy of “developed markets before emerging markets, premium segments before mid-range segments, and right-hand drive before left-hand drive.”