Xiaomi Ups 2025: Company Sets Ambitious 400K EV Goal Following Profit Milestone

In 2025, Xiaomi dramatically raised the bar for its electric vehicle ambitions, projecting a bold target of 400,000 EV units despite already scaling up to 350,000. This leap reflects Xiaomi’s rising confidence, backed by a landmark profit milestone, strong delivery momentum, and aggressive capacity expansion.

The Rise of Xiaomi’s EV Business

Xiaomi’s foray into electric vehicles has been nothing short of meteoric. After launching its first EV model, the SU7, in 2024, the company quickly made headlines. It posted 32.1 billion yuan in EV-related revenue in 2024 and delivered more than 135,000 SU7 units. 

Just a few months ago, Xiaomi raised its 2025 EV delivery target from 300,000 to 350,000 units, citing strong demand and improving production capacity.  According to CEO Lei Jun, the adjustment reflects a 16% upward revision, a vote of confidence from top management. 

Profit Milestone: Xiaomi’s EV Business Turns the Corner

One of the most striking developments in Xiaomi’s EV journey is its profit breakthrough. In recent quarterly results, Xiaomi’s innovative business division, which includes both EVs and AI, reported its first-ever quarterly profitability. 

This is a critical inflection point. Making money from EVs is notoriously difficult; even juggernauts like Tesla took years to post real profits. Xiaomi joining their ranks underscores not just demand, but operational strength.

Deeper Expansion: Factory Growth & Land Acquisition

To meet its surging EV targets, Xiaomi has made a big bet on expanding its manufacturing capacity:

• It secured a 50-year land lease in Beijing for 485,134 square meters, situated close to its existing EV factory. 
• This additional space will support a smart connected car and components project, crucial for both scale and technological sophistication. 
• The expanded manufacturing footprint aligns with Xiaomi’s broader plan to accelerate EV production and meet its ambitious delivery goals.

Demand Momentum: SU7 & YU7 Leading the Charge

Xiaomi’s success is not only on paper; consumer demand has been robust:

• The SU7 sedan continues to attract strong demand. By the end of 2024, it reportedly had more than 248,000 locked-in orders within just nine months of launch. 
• Its newer model, the YU7 SUV, is drawing huge attention. In late June 2025, Xiaomi moved up its launch date, citing strong interest.
• In July 2025, deliveries for the YU7 began, further diversifying Xiaomi’s EV lineup. 

These models, combined with growing production efficiency, are helping Xiaomi push toward its revised delivery targets.

Financing the EV Pivot: Capital Raises & Strategic Investment

To fuel this rapid EV expansion, Xiaomi is not holding back financially:

• The company raised a massive US$5.5 billion through a share sale. 
• These funds will support R&D, factory expansion, and scaling production, essential for meeting the more aggressive 2025 target.
• Analysts from major institutions have taken notice. Some forecasts suggest Xiaomi’s EV business could reach a profit inflection point by 2026, as losses narrow and sales scale. 

Challenges Ahead: Can Xiaomi Deliver on 400K?

While the 400,000‑unit goal is ambitious and signals strong long-term intent, Xiaomi still faces hurdles:

1. Capacity constraints — Despite the new land purchase, scaling factory operations takes time.
2. Delivery wait times — Many buyers still cite long lead times (weeks to months) for SU7 and YU7 orders. 
3. Competition — The Chinese EV market is fiercely competitive, with players like BYD, Geely, and other pure EV startups vying for market share.
4. Profit pressure — Though Xiaomi hit a profitability milestone, sustaining and growing it will require continued volume growth and cost control.

Why This Matters — For Investors & AI‑Stocks Watchers

For investors eyeing AI stocks and stock market opportunities, Xiaomi’s push into EVs offers a compelling narrative:

• It’s not just a smartphone maker anymore; Xiaomi is transforming into a tech-automaker hybrid, verticalizing innovation across vehicles, AI, and smart hardware.
• The EV business could become a core earnings driver, potentially unlocking a new growth phase for the company.
• As Xiaomi ramps up, its performance could influence valuations among other AI-focused and smart-vehicle companies, making it a key name for stock research.

Long-Term Vision: Beyond 2025

Xiaomi’s ambitions don’t end in China or in 2025:

• The company has signaled plans to launch overseas EV shipments by 2027, opening a global chapter for its auto division. 
• It’s also deepening investments in AI, chip design, and smart components, reinforcing a future where software‑defined cars may be as important as hardware.
• By marrying its core strengths in consumer electronics and R&D, Xiaomi could emerge as a landmark player in the next generation of smart EVs.

Conclusion

Xiaomi’s logic for upping its 2025 EV ambition from 350,000 to a stated 400,000-unit goal reflects more than optimism; it points to a well-executed plan. The company has achieved a profit milestone, is scaling production, and is backing up its targets with major capital investments.

While there are risks, from factory scalability to global competition, Xiaomi’s momentum in EVs is real. For investors looking into AI stocks and stock market developments, Xiaomi offers not just a device story but a bold predictive bet on the future of mobility.

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The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.