Xiaomi EV Q2 2026 Loss Narrows Despite Strong Delivery Growth

Xiaomi EV Q2 2026 Results Show Continued Losses

Xiaomi EV Q2 2026 results show that the Xiaomi Corporation electric vehicle, artificial intelligence and other new initiatives remained loss-making despite strong delivery growth. The segment recorded an operating loss of 2.6 billion yuan ($383 million) in the second quarter, marking its second consecutive quarterly loss. However, the loss narrowed from 3.1 billion yuan in the first quarter. The result also contrasts with 2025, when Xiaomi’s new initiatives achieved their first quarterly operating profit in the third quarter and their first full-year operating profit. The latest figures therefore highlight a widening gap between Xiaomi’s vehicle delivery momentum and near-term profitability.

Revenue Growth Fails to Offset Margin Pressure

Revenue from Xiaomi’s new initiatives reached 24.9 billion yuan in the second quarter, increasing 17.1% year-on-year and 25.3% from the previous quarter. EV revenue accounted for 23.9 billion yuan, rising 15.9% year-on-year, while other related businesses generated 1 billion yuan, up 56.5%. That latter category included AI revenue generated by the Xiaomi MiMo large language model series. Despite the revenue expansion, profitability weakened because the segment’s gross margin fell to 19.2%, compared with 26.4% a year earlier and 20.1% in the first quarter.

Higher Costs Weigh on Xiaomi’s Profitability

Xiaomi attributed the year-on-year gross-margin decline to several factors affecting the composition and cost of the business. A lower share of Xiaomi SU7 Ultra deliveries reduced the contribution from the higher-priced model, while prices for core components increased. The company also faced higher costs associated with its AI business. At the same time, operating expenses for the new initiatives segment climbed to 7.4 billion yuan from 5.9 billion yuan a year earlier, representing a 25.7% increase. These pressures show why higher revenue has not yet translated into sustained operating profit.

AI and New Technology Investment Remains High

Investment intensity also remained high as Xiaomi continued building capabilities beyond its vehicle business. Group research and development spending increased 18.9% to 9.2 billion yuan, with the increase driven mainly by the new initiatives and particularly by investment in AI infrastructure. Capital expenditure was approximately 3.6 billion yuan during the quarter, of which 2.4 billion yuan was allocated to the new initiatives segment. The spending pattern indicates that Xiaomi is continuing to prioritize product development, manufacturing and technology infrastructure even while the segment absorbs substantial operating losses.

EV Deliveries Continue to Expand

Vehicle deliveries remained the strongest part of the quarter’s performance. Xiaomi delivered 104,199 vehicles in the second quarter, an increase of 28.2% year-on-year. The growth was particularly notable against a 22% decline in retail sales of passenger vehicles in China over the same period. Xiaomi’s quarterly deliveries have increased substantially since 2024, when second-quarter deliveries stood at 29,984 vehicles. Deliveries reached 82,057 in the second quarter of 2025 before rising to 104,199 in the second quarter of 2026, underscoring the rapid expansion of the company’s EV business.

Xiaomi EV Quarterly Deliveries 2024-2026

Quarterly Delivery Growth Remains Significant

The delivery trajectory can be seen across Xiaomi’s quarterly results from 2024 through 2026. In 2024, deliveries rose from 29,984 vehicles in the second quarter to 69,697 in the fourth quarter. During 2025, quarterly deliveries increased from 75,869 in the first quarter to 145,115 in the fourth quarter, while 2026 began with 80,856 vehicles in the first quarter and reached 104,199 in the second quarter. The figures demonstrate sustained year-on-year expansion, although the company’s profitability remains sensitive to product mix, component costs and the investment required to support its broader technology strategy.

SU7 Series Strengthens Xiaomi’s Premium EV Position

Pricing also shifted during the quarter. Xiaomi’s average selling price was 229,312 yuan per vehicle, down 9.6% year-on-year and 2.5% from the previous quarter. The company linked the decline partly to a smaller share of higher-priced Xiaomi SU7 Ultra deliveries. Meanwhile, cumulative deliveries of the Xiaomi SU7 series exceeded 500,000 units as of August 17. Xiaomi said the series ranked first in sales among pure electric sedans priced above 200,000 yuan in the Chinese mainland during the first half of 2026, highlighting the importance of the model family to its market position.

New Extended-Range SUV Strategy

Xiaomi Corporation is expanding its product strategy as it prepares for the next stage of growth. In July, the company unveiled the Xiaomi Kunlun Technical Architecture and its first extended-range SUV series, the Xiaomi Sky Nomad series. The new series is claimed to offer a CLTC combined range of up to 1,705 kilometers. Pre-sales prices for the Xiaomi Sky Nomad N90 Max and N70 Max are 299,900 yuan and 259,900 yuan, respectively, with the launch expected in September. The move broadens Xiaomi’s offering beyond pure electric vehicles and gives the company another route to address different consumer requirements.

Slower July Deliveries Raise Full-Year Target Pressure

Near-term delivery momentum has nevertheless moderated. Xiaomi delivered 31,267 vehicles in July, representing growth of only 2.68% year-on-year and a 9.99% decline from June. Deliveries for the January-July period totaled 216,322 units, up 14.83% year-on-year. With five months remaining in 2026, Xiaomi would need to average approximately 66,700 vehicle deliveries per month to achieve its full-year target of 550,000 units. The required pace is significantly above July’s result, making the remainder of the year important for assessing whether recent delivery momentum can recover.

Frequently Asked Questions

What was Xiaomi’s EV operating loss in Q2 2026?
Xiaomi’s electric vehicle and other new initiatives recorded a 2.6 billion yuan operating loss in the second quarter of 2026, despite substantial revenue and delivery growth. The loss represented the second consecutive quarterly operating loss for the segment, although it narrowed from 3.1 billion yuan in the first quarter. The decline in profitability was mainly associated with lower gross margin, higher core component prices, increased AI-related costs and a smaller contribution from Xiaomi SU7 Ultra deliveries. Operating expenses also increased significantly during the quarter as Xiaomi continued investing in its expanding technology and vehicle operations.

How many vehicles did Xiaomi deliver in Q2 2026?
Xiaomi delivered 104,199 vehicles during the second quarter of 2026, representing a 28.2% increase compared with the same quarter of 2025. The growth was notable because passenger vehicle retail sales in China declined 22% during the comparable period. Xiaomi’s second-quarter deliveries increased from 29,984 vehicles in 2024 to 82,057 in 2025 and then to 104,199 in 2026. However, July deliveries slowed to 31,267 vehicles, meaning Xiaomi faces a substantially higher monthly delivery requirement during the remaining five months of 2026 to achieve its 550,000-unit annual target.