Xiaomi, a relatively new entrant in the automotive industry, has quickly outpaced long-standing electric vehicle (EV) startups in terms of sales within just one year of entering the market. The company’s 2024 financial earnings, marking its first annual results as an established carmaker, reveal a successful investment in the EV sector by founder Lei Jun. Xiaomi reported a revenue of 365.9 billion Chinese yuan ($50.6 billion) in 2024, indicating a 35% increase, alongside a 41% rise in adjusted net profit, amounting to 27.2 billion Chinese yuan ($3.8 billion).
A significant portion of Xiaomi’s revenue still stems from its traditional ventures in smartphones and home appliances. However, approximately 10% of its revenue, or 32.7 billion yuan ($4.5 billion), is now attributed to its burgeoning EV division. In 2024, Xiaomi reported the delivery of 136,000 EVs and adjusted its 2025 delivery target upwards to 350,000 units from an earlier target of 300,000.
Xiaomi’s stock has seen remarkable growth, increasing by over 280% in the past year, surpassing nearly all other stocks in Hong Kong’s Hang Seng Index. The company launched its first EV model, the SU7, in March 2024. High demand has caused a significant waitlist, and the model even earned praise from Ford CEO Jim Farley in a podcast last October. On the day preceding its earnings release, Xiaomi announced it had delivered its 200,000th vehicle since entering the market.
Looking ahead, Xiaomi plans to introduce the YU7, an electric SUV, in the summer. This model will compete with Tesla’s updated Model Y. Venture into the EV market has proven costly for Xiaomi and Jun, who previously disclosed significant spending, tenfold the industry average, to create Xiaomi’s initial EV prototype. Despite this, Jun remained committed to EV production even after Apple’s decision to halt its “Apple Car” project in early 2024.
In 2024, Xiaomi invested 24.1 billion yuan ($3.3 billion) in research and development, focusing primarily on EVs and plans to increase this to about 30 billion yuan ($4.2 billion) in the following year. Xiaomi’s successful EV expansion appears to bolster its other businesses, notably smartphones. Research firm Counterpoint noted that Xiaomi’s ability to manufacture and sell EVs has “further enhanced its brand image,” which has positively impacted its phone sales. In late 2024, Xiaomi held a 17.2% share of the market, securing its position as China’s second-largest phone manufacturer, trailing Huawei and slightly edging out Apple.
Globally, Xiaomi performed robustly in the phone sector, standing as the third-largest phonemaker in 2024, following Apple and Samsung, according to data from Canalys. Chinese phone manufacturers are actively expanding into new markets, especially in Southeast Asia and the Middle East. Analysts suggest these regions are promising entry points for Chinese firms aiming to move into the premium sector.
The broader Chinese tech sector has also experienced a rally, with technology stocks surging as investors reassess the country’s innovation potential following DeepSeek’s release of artificial intelligence technology. The Hang Seng Tech Index, which tracks technology companies in Hong Kong, has risen by 40% this year. BYD shares reached a record high following claims that its new charging system could fully charge an EV in just five minutes.
Additionally, there is investor optimism for increased governmental support as Beijing aims to stimulate domestic consumption amid new tariffs from U.S. President Donald Trump. Previously this year, several key figures from China’s tech industry, including Alibaba’s Jack Ma, Huawei’s Ren Zhengfei, DeepSeek’s Liang Wenfeng, and Xiaomi’s Lei Jun, met with Xi Jinping, which was perceived as an indication that Beijing’s strict stance against Big Tech might be easing.
