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Chinese technology behemoth Xiaomi, best known for its smartphones, is preparing to enter the European electric vehicle (EV) market by 2027.
The company’s president, William Lu, confirmed the plan in a recent earnings call, signalling the firm’s ambition to become one of the world’s top five automakers.
Xiaomi launched its first EV, the SU7 saloon, in 2023, followed by the YU7 SUV. The company is experiencing phenomenal growth in its home market, with over 80,000 deliveries in the last quarter alone.
However, this success has led to significant production bottlenecks, with wait times for the SU7 currently at 41 weeks and the YU7 exceeding a year. Responding to the delays, CEO Lei Jun recommended that impatient customers consider rival products.
“If you need to buy a car quickly, other China-produced new energy vehicles are pretty good,” he said, highlighting the Xpeng G7, Li Auto i8 and even the Tesla Model Y – which he called “a great car”.
The SU7 saloon, which was benchmarked against the Porsche Taycan and Tesla Model S, offers impressive performance, including a top-spec model with up to 664bhp and a claimed maximum range of nearly 500 miles. The YU7 SUV is similarly powerful, with a claimed range of 519 miles. The cars will likely be positioned at the premium end of the European market, given their high-tech features and focus on performance.
Before its European debut, Xiaomi must address its production challenges. The company’s sole factory in Beijing has an annual capacity of 150,000 vehicles and a second phase has yet to begin operations. Despite the initial losses from its automotive division, Xiaomi expects to achieve profitability later this year, paving the way for its ambitious international expansion.
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