Xiaomi’s Plans for Entering the European Market
The Chinese company Xiaomi plans to enter the European electric vehicle market by 2027, where it will be able to compete with giants such as Tesla and BYD. The company’s management expects the automotive division to become profitable by the end of this year. To develop the European research and development center, veterans from BMW and Formula 1 have joined the Xiaomi team.
Rapid Growth and Model Popularity
Xiaomi’s entry into the automotive market has been a real revelation. Less than two years ago, the company was not producing any mass-market cars, but now it manufactures the highly popular SU7 sedan and YU7 SUV, which have received positive reviews from both owners and experts. By 2027, Xiaomi plans to compete not only in China but also beyond its borders.
The company has long considered the possibility of international expansion but kept specific markets secret. However, during a recent results conference, Xiaomi’s president Lu Weibing stated that the manufacturer first plans to enter the European market by 2027 and compete with brands such as BYD and Tesla.
Sales Dynamics and Production Capacity
Xiaomi’s success in the automotive industry has been ensured by strong dynamics in the domestic market. In the second quarter of 2025 alone, the company delivered 81,302 vehicles, and in the first half of the year, this figure reached 157,000. With increased production of the YU7, further growth in deliveries is expected, although some customers are already facing delays of over a year.
Financial Performance and Prospects
Despite the rapid sales pace, the tech giant’s automotive business incurred losses of approximately 300 million yuan (41 million dollars) in the last quarter. However, co-founder Lei Jun recently stated that Xiaomi’s automotive division will become profitable in the second half of 2025.
Team Expansion and European Ambitions
Earlier this year, it became known that Xiaomi is hiring staff for a new European research and development center. Among the key appointments is Rudolf Dittrich, who previously worked at BMW and in the Formula 1 teams Williams and Sauber. In addition to him, former BMW employees Dusan Sarac and engineer Yannis Hellwig have joined the team.
Models for the European Market
It is not yet known which Xiaomi model will appear first in Europe, but most likely, the company plans to sell both the SU7 and the YU7 in the region. Active work is also underway on a third model, known as the YU9. It will be a large SUV with a hybrid powertrain, including a 1.5-liter turbocharged engine and two electric motors.
Xiaomi’s entry into the European market could significantly impact the competitive landscape, especially for manufacturers like Tesla, which currently dominate the electric vehicle segment. Rapid scaling, technological innovation, and aggressive pricing make Xiaomi a serious player. The company’s success in China already demonstrates its ability to quickly adapt to market demands and offer in-demand products. European consumers are likely to appreciate the combination of modern design, advanced technology, and affordable pricing, making Xiaomi’s future entry into this market one of the most exciting events in the automotive industry in the coming years.