On May 27, Xiaomi Group officially released its financial results for the first quarter of 2025, revealing an impressive performance in its smart electric vehicle (EV) segment, particularly the Xiaomi SU7 series. With total deliveries reaching 75,869 vehicles in Q1 alone, Xiaomi’s push into the EV market continues to gain significant traction. The cumulative delivery count for the SU7 series has now exceeded 258,000 units — a strong indicator of consumer acceptance and accelerating momentum in China’s competitive EV landscape.
Record-Breaking Deliveries Boost EV Segment Revenue
According to the Q1 financial disclosure, Xiaomi’s “Smart Electric Vehicle and AI Innovation” business unit recorded total revenue of RMB 18.6 billion (approximately USD 2.6 billion). Of that, electric vehicles alone contributed RMB 18.1 billion, demonstrating that Xiaomi’s automobile division is the primary driver of this new revenue stream. The remaining RMB 0.5 billion came from other related innovation businesses, including AI applications and emerging tech ventures.
The 75,869 vehicles delivered in Q1 equates to a massive quarter-on-quarter growth, especially when compared to the total of 136,854 units sold during the entire year of 2024. This implies that Xiaomi has nearly reached 55% of last year’s volume in just one quarter.
EV Margins Improve Significantly Amid Production Ramp-Up
In terms of profitability, the Q1 report showed that the gross margin for Xiaomi’s Smart EV and AI Innovation segment reached 23.2%, a significant milestone for a newly-established automotive brand. Despite still operating at a loss, Xiaomi’s operating deficit for this segment was limited to RMB 500 million in Q1.
When breaking down the numbers, this results in an estimated average loss of RMB 6,500 (approximately USD 900) per vehicle, a remarkable improvement from 2024, where the average loss was RMB 45,000 per vehicle. In that year, the company posted a net loss of RMB 6.2 billion in its EV business on the back of 136,854 SU7 series deliveries.
The narrowing of per-vehicle losses highlights a clear trend toward improved unit economics and cost optimization. It is a strong signal that Xiaomi’s automotive business is approaching a crucial inflection point.
Scale, Self-Built Factories, and R&D Drive Long-Term Strategy
Xiaomi’s President and Partner Lu Weibing previously addressed the losses associated with the EV division. He noted that the current phase involves heavy front-loaded investments into self-built manufacturing plants and independent R&D for core technologies. These are deliberate choices that mirror the industry standard for new automotive entrants and are essential for maintaining long-term competitiveness and vertical integration.
As with many EV startups, Xiaomi’s initial financial strain is considered a natural part of the growth cycle. By focusing on expanding production capacity and increasing delivery volumes, the company aims to achieve better economies of scale. This, in turn, is expected to bring down costs per unit and push the division closer to breakeven.
High-End Model SU7 Ultra Signals Premium Market Viability
An important strategic breakthrough came with the success of the SU7 Ultra, Xiaomi’s higher-end model within the SU7 series. This version has reportedly been “oversubscribed”, indicating robust consumer demand even at a premium price point. The popularity of this flagship EV supports Xiaomi’s ability to improve gross margins and diversify revenue sources within the EV vertical.
The combination of mass-market models and premium variants enables Xiaomi to cover a broader segment of the EV market and fine-tune its positioning across multiple customer demographics. The performance of the SU7 Ultra in particular enhances the brand’s image and provides a viable path to long-term profitability.
Profitability on the Horizon: Q2 2025 Outlook Optimistic
Given the current pace of deliveries and cost control efforts, industry analysts and internal sources alike believe that Xiaomi’s automotive business could achieve breakeven or even profitability as early as Q2 2025. This would mark a significant achievement for a company that only officially entered the EV market within the last few years.
The impressive Q1 numbers validate Xiaomi’s broader vision of becoming not just a leading smartphone manufacturer, but also a key player in the smart mobility and AI-driven innovation sector. The crossover between smartphones, AI, and EVs positions Xiaomi uniquely among competitors, especially with its control over the entire stack — from hardware and software integration to smart cabin and autonomous driving technology.
Conclusion: Xiaomi’s EV Bet is Paying Off
Xiaomi’s Q1 2025 financial results offer a compelling snapshot of an ambitious strategy beginning to bear fruit. With more than 75,000 EVs delivered in a single quarter, improved margins, and narrowing losses, the company is well on its way to making its automotive division a sustainable and profitable venture. As the SU7 series — particularly the Ultra model — continues to gain traction, and production capacity scales further, Xiaomi’s transition from consumer electronics giant to EV powerhouse seems increasingly inevitable.
If Q2 continues this trend, 2025 may be remembered as the year Xiaomi’s electric vehicle dream turned into a profitable reality.
