Having made a name for itself with record sales in China, Xiaomi is now setting its sights on the European market. Company President William Lu announced that they will begin selling electric cars in Europe in 2027. This statement indicates that Xiaomi has chosen Europe as its first overseas market.
Xiaomi Coming to the European Market
Xiaomi’s electric vehicle division is currently researching and preparing for the European market. While the company is a well-known brand abroad, it says its electric vehicle division is still unknown. In this context, on July 5th, Lu shared a photo of a SU7 Ultra model with German license plates on his Weibo account. This vehicle became Xiaomi’s first test vehicle registered in Europe.
Lei Jun, the company’s founder and CEO, stated in a live broadcast on July 2nd that the priority is to meet delivery demands in China and that expanding internationally will only be possible in 2027.
Xiaomi is experiencing production difficulties due to strong demand in China. Delivery times for the SU7 model have increased to 41 weeks, while for the YU7 model, delivery times have increased to 58 weeks. This is seen as the main reason for the company’s postponement of its international expansion.
Xiaomi generated 20.6 billion yuan (approximately $2.87 billion) in revenue from its electric vehicle division in the second quarter of 2025. The gross profit margin for innovative businesses such as electric vehicles and artificial intelligence increased to 26.4 percent in the second quarter.
Operating losses decreased from 500 million yuan to 300 million yuan. The company delivered a record 81,302 vehicles in the second quarter. This figure represents a 197.73 percent increase compared to the same period last year and a 7.16 percent increase compared to the first quarter.
William Lu said that Xiaomi’s electric vehicle division is expected to achieve monthly profitability in the second half of the year. However, he added that the division still incurs significant losses due to investments exceeding 30 billion yuan in the past three years.
