Xiaomi officially confirms its intention to begin operations in the European market

Xiaomi has reason to celebrate after announcing outstanding results from its electric vehicle division, with revenues of 20,600 million yuan -about 2,440 million euros at the current exchange rate- in the second quarter of 2025. This achievement consolidates its position in the competitive Chinese car market and marks an important milestone following the launch of its SU7 electric saloon last year, and the more recent YU7, an SUV with a rather sporty look.

In financial terms, the Chinese manufacturer’s revenue from electric vehicle sales grew 13.81 percent compared with the first quarter of the year, when it reached 18,100 million yuan -about 2,000 million euros-, and an impressive 232.26 percent compared with the 6,200 million yuan -about 700 million euros- of the second quarter of last year. These results are the product of the rising demand for the manufacturer’s vehicles, with waiting times that are really long in some cases.

As for deliveries, Xiaomi handed over 81,302 electric vehicles to its customers between April and June 2025, an increase of 197.73 percent over the same period of the previous year and 7.16 percent more than in the first quarter of this year. All of these figures include both the SU7 and the YU7, which makes the rapid rise of Xiaomi in the Chinese electric vehicle market clear.

However, not all the news is good for Xiaomi. The company’s innovative businesses division, which includes artificial intelligence and technologies for electric vehicles, posted an operating loss of 300 million yuan -about 35 million euros- in the second quarter. Although this figure represents an improvement over the 500 million yuan -around 59 million euros- loss of the previous quarter, there is no doubt that the company faces great challenges ahead that it must address.

Xiaomi points to the European market as its next target

On the other hand, and in relation to the title of this post, the Chinese manufacturer took advantage of the presentation of its second-quarter financial results to officially confirm its intention to enter the European market in 2027, which will be its first international destination. William Lu, the company’s president, has stated that Xiaomi is already laying the groundwork for this move, including the creation of a Research and Development Centre in Munich, Germany, last April. During this announcement, Lu showed an SU7 Ultra with a German registration plate, making clear that Germany will be one of its main European markets. The company has not specified, however, which European countries it plans to start operations in.