Xiaomi Corp. Shocks Europe: Full EV Market Invasion by 2027
Xiaomi just dropped a battery-powered bombshell—Europe's automotive landscape will never be the same.
The Tech Giant's Electric Gambit
Smartphones? Smart homes? Try smart cars. Xiaomi's plotting a full-scale European EV offensive, leveraging its tech ecosystem to disrupt legacy automakers asleep at the wheel. No half-measures—this is total market warfare.
Why 2027 Matters
Two years isn't just a timeline—it's a statement. While traditional manufacturers scramble to pivot, Xiaomi's moving with startup agility and corporate muscle. They're not entering the market—they're aiming to rewrite it.
The Unspoken Finance Angle
Let's be real—this reeks of desperation to diversify beyond hardware margins that make razor blades look fat. Nothing says 'innovation' like chasing the hottest trend while your core business faces saturation. Typical tech play—pivot or perish.
Europe won't know what hit it.
Lu says there is no specific product plan yet
President Lu said his company did not have a specific product plan yet, but research and preparations were underway for Europe’s expansion by 2027. However, he pointed out that the company’s EV division expects to become profitable in H2 2025 despite recording losses of up to 300 million Yuan (~$41.77M).
Ford’s CEO Jim Farley acknowledged that Chinese EV makers like Xiaomi were far ahead in cost, in-car technology, and quality. According to the Cryptopolitan, Farley admitted that the affordability of Chinese EVs had disrupted the industry as their products slowly gained global recognition.
President Lu shared a photo on Weibo on July 5, showing the SU7 Ultra with German license plates. He pointed out that this was his company’s first experimental EV to be registered in Europe. However, the founder, CEO, and Chairman of Xiaomi, Lei Jun, said on July 2 that the company WOULD prioritize meeting domestic delivery demand before getting ready for overseas markets by 2027. The company is facing a severe shortage in the local market, with delivery wait times for the SU7 and the YU7 reaching 41 weeks and 58 weeks, respectively.
Xiaomi’s EV division delivers over $2B in Q2 revenue
According to Xiaomi’s financial report, the company’s EV business generated nearly $2.87 billion (~RMB 20.6B) in Q2 2025, a 13.81% increase from Q1 and a 232.26% increase YoY. The company’s gross margin was 26.4% in Q2, up from 23.2% in Q1 and about 15.4% in the same period in 2024.
The company said it would continue advancing its human-car-home strategy despite recording operating losses of $41.2 million in Q2. However, President Lu believes his company’s auto business will turn profitable in H2 2026. The company has invested over RMB 30 billion (~$4.17B) in the past three years, and it hopes to build on the SU7’s market momentum to advance its automaking ambitions.
Lu also explained that his company was not interested in price wars, saying that Xiaomi targeted total revenue growth of over 30% in 2025. The Cryptopolitan reported that Beijing stepped in to end the price wars in June, although demand for Xiaomi’s products was strong enough for the company to avoid the brutal price cut chaos that squeezed margins. The company’s overall net revenue almost doubled, cementing its position in the EV industry.
Xiaomi’s market value has increased by over $120 billion over the past 12 months. The company aims to deliver 350K units by the end of 2025 and has so far achieved nearly 53% of its 2025 delivery goals. Nvidia’s CEO, Jensen Huang, recently said he wanted to purchase a Xiaomi car since the Xiaomi CEO showed him the YU7 SUV back in June. Huang added that Xiaomi cars had beautiful designs and incredible technology.
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