SHANGHAI/BEIJING (Reuters) -Xiaomi Corp announced on Monday that it aims to deliver 130,000 electric vehicles this year. This marks the automaker’s third increase in its forecast, as it reported a 30.5% surge in third-quarter revenue. Xiaomi EV deliveries are projected to keep climbing as demand remains robust. #XiaomiEVDeliveries
CEO Lei Jun shared on social media that the company is raising its goal from the previous target of 120,000 SU7 sedans. The original target was 76,000 units when Xiaomi first launched the SU7 earlier this year, but rising demand has prompted the upward revision.
Xiaomi launched the Porsche-inspired SU7 sedan in March, entering the competitive Chinese EV market. The car’s base model starts at under $30,000, making it $4,000 cheaper than Tesla’s Model 3 in China.
Electric and plug-in hybrid vehicle sales in China now make up more than half of all auto sales. In October, EV sales grew 56.7% year-over-year, marking the fourth consecutive month they outsold traditional gasoline cars.
To meet this increasing demand, Xiaomi has doubled its production shifts since June. Additionally, it introduced the premium SU7 Ultra model, which starts at over $110,000.
During a post-earnings call, Xiaomi President Lu Weibing mentioned that their factory can currently produce 20,000 cars monthly. He also highlighted potential for further growth in production capacity. #XiaomiEVDeliveries
“Our investment is still very substantial and we continue to improve our hardware and software. And basically it doesn’t matter what the ultimate delivery level is, we are still investing very heavily. We are working on R&D (research and development) for new models,” he said.
Xiaomi is actively working on developing autonomous driving technology, according to company officials. Revenue for the quarter ending September 30 reached 92.5 billion yuan ($12.77 billion), surpassing an LSEG consensus estimate from 15 analysts of 91.1 billion yuan.
Huatai Securities projects that Xiaomi will deliver 400,000 electric vehicles by 2025. At that point, EV sales are expected to account for around 20% of total revenue, up from 8% this year.
However, Xiaomi’s auto division remains unprofitable, with an adjusted loss of 1.5 billion yuan in the quarter. The unit’s gross profit margin stood at 17.1%.
Xiaomi remained the world’s third-largest smartphone maker, with 42.8 million units shipped in the quarter. This represents a 3% increase, securing a 14% market share, according to Canalys.
Lu announced plans to boost the number of offline retail stores in mainland China from 13,000 to 15,000 this year and to 20,000 next year. The company is investing heavily in technology to increase market share.
Xiaomi’s adjusted net profit rose 4.4% to 6.25 billion yuan, exceeding a consensus estimate of 5.92 billion yuan.
Interestingly, Xiaomi EV deliveries play a crucial role in their revenue growth. As demand for electric cars spikes, the company is seizing the opportunity. Additionally, Xiaomi is expanding offline retail stores across China to meet customer needs.
