Xiaomi CEO Lei Jun used a recent New Year livestream to set a bold target for the company's electric vehicle (EV) business: 550,000 vehicle deliveries in 2026. During the broadcast, Lei also conducted a live "teardown" of the YU7 model, emphasizing the car's safety-oriented design.
Lei noted that Xiaomi's original delivery target for 2025 was 300,000 vehicles, later revised to 350,000, and ultimately, the company delivered 410,000 units, exceeding expectations. Today, customers who place orders can typically take delivery within three to four months.
Financially, Xiaomi's automotive business generated CNY29 billion (approximately US$4.1 billion) in revenue and CNY700 million in operating profit in the third quarter of 2025. With the first model, the Xiaomi SU7, on the market for roughly 18 months, the company posted its first sustained profit in the EV segment.
However, safety concerns have shadowed the company. In 2025, two fatal accidents involving the SU7 drew public attention, prompting the Chinese government to tighten safety regulations, including rules governing hidden door handles and marketing language. Critics have long contended that China's electric vehicle ads "grab attention with bold claims while burying disclaimers in fine print," often overstating performance and downplaying potential risks. Lei acknowledged during the livestream that Xiaomi needed to change its "fine print marketing" practices and better consider consumer perceptions, while also cautioning that malicious online attacks against the company could trigger legal action.
The broader Chinese EV market remains intensely competitive. As 2026 begins, industry observers are watching government subsidy policies closely. The Ministry of Commerce recently announced the 2026 auto trade-in program, offering EV buyers a 12% discount on new vehicles when trading in old ones, up to a maximum of CNY20,000. Meanwhile, China's vehicle purchase tax, previously fully exempt, will be halved in 2026, effectively raising costs for consumers. Many automakers have pledged to absorb some of the added expenses, offering alternative discounts or more attractive financing options.
Looking ahead, Xiaomi plans to launch four new vehicles in 2026: a refreshed SU7, an SU7 Executive Edition, a range-extended five-seat SUV, and a range-extended seven-seat SUV. The company also signaled its international ambitions: 2027 will mark its "first year of overseas expansion," with a new research and development center established in Munich, Germany. Reports indicate that Xiaomi has already recruited multiple executives from BMW to form an elite management team, while its LinkedIn page continues to post new hiring opportunities.
Xiaomi's 2026 roadmap underscores the company's ambition to evolve from a domestic EV player into a global competitor, balancing rapid growth with increased attention to safety, regulatory compliance, and international market strategy.
Article edited by Jerry Chen
