Xiaomi Plans European EV Market Entry by 2027 Amid Tariff Challenges

Xiaomi Corp., the Chinese tech giant, has set its sights on the European electric vehicle market with ambitions to compete against Tesla and BYD by 2027. The announcement follows a robust Q2 2025 performance, where the company's EV division saw quarterly revenue surge 31%, driven by the successful launch of its second electric vehicle model. President Lu Weibing highlighted the potential to replicate Xiaomi's Chinese business model in Europe, though he acknowledged significant hurdles, including a 48% effective tariff rate on exports to the EU.

The company delivered over 81,000 vehicles domestically last quarter—a record high—yet struggles to meet local demand. European expansion remains in the research phase, with no specific product lineup confirmed. Xiaomi's EV unit anticipates turning profitable in the latter half of 2025 despite current losses nearing 300 million yuan. EU countervailing duties, imposed in response to alleged Chinese government subsidies, add complexity to the planned market entry.