Xiaomi Smart EV Business Achieves First Annual Profit in 2025

Xiaomi marked a major milestone in its automotive journey as its smart EV and AI-focused division recorded its first full-year operating profit in 2025. The breakthrough was driven primarily by rapid vehicle delivery growth, improved pricing strategies, and stronger product positioning in the electric SUV segment. The company’s performance reflects a sharp transition from early-stage investment to operational efficiency, supported by scaling production and increasing consumer demand for its electric vehicle portfolio.

Revenue Growth Driven by Electric Vehicle Sales

The company’s innovative segment reported a substantial revenue increase, rising by 223.8% year-on-year to reach 106.1 billion yuan in 2025. Electric vehicle sales were the dominant contributor, accounting for 103.3 billion yuan of total segment revenue. This sharp expansion highlights the growing market acceptance of Xiaomi’s EV lineup and its ability to scale production effectively while maintaining demand across multiple vehicle categories.

Profitability Milestone and Margin Expansion

The segment achieved a positive operating income of 900 million yuan, marking its first profitable year. Profitability was further supported by an improvement in gross margins, which increased to 24.3%, up by 5.8 percentage points compared to the previous year. This margin expansion was largely attributed to a higher share of premium models and improved cost efficiencies across manufacturing and supply chain operations.

Quarterly Performance and Delivery Momentum

In the fourth quarter alone, revenue reached 37.2 billion yuan, while operating profit stood at 1.1 billion yuan, indicating strong year-end momentum. Total vehicle deliveries for 2025 reached 411,082 units, representing a year-on-year growth of 200.4%. The average selling price also increased by 7.1% to RMB 251,171, reflecting a shift toward higher-value models and improved product mix.

Model-Wise Performance Highlights

December deliveries hit a record 50,212 units, driven primarily by the strong demand for the YU7 electric SUV. The YU7 alone contributed 39,089 units, accounting for nearly 78% of monthly deliveries. In contrast, the SU7 sedan series experienced a temporary decline in volumes due to an ongoing product transition, signaling a strategic refresh rather than weakening demand.

Future Outlook and Expansion Targets

Looking ahead, Xiaomi aims to deliver 550,000 vehicles in 2026, signaling continued confidence in its EV growth trajectory. The recent launch of the next-generation SU7 sedan is expected to support this target by revitalizing the sedan portfolio and strengthening the overall product lineup. With sustained demand, improving margins, and expanding production capabilities, the company is positioning itself as a significant player in the competitive electric mobility landscape.