In less than 2 Years, this new carmaker is already profitable

That’s something even industry giants struggle to achieve. Yet in under two years, Xiaomi has already turned its electric car business profitable, and it’s shaking up the entire automotive game.

The car industry is known for long development cycles and massive investments. Most EV startups burn cash for years before seeing any real profit. But Xiaomi? It’s moving at tech speed, and it shows.

From smartphones to electric cars

What started as a diversification move quickly became a serious revenue engine. Xiaomi’s “Smart EV, AI & new initiatives” division went from early losses to strong profitability in 2025.

After losses in the first half of the year, things flipped fast. The third quarter delivered an operating profit of around €87 million, followed by €137 million in Q4. By the end of 2025, Xiaomi’s EV division posted a full-year operating profit of about €112 million, already in the green.

And unlike some rivals like Lucid Motors or Rivian, Xiaomi’s profits include all costs: production, R&D, marketing, and logistics.

Sales are exploding

The key? Volume. In 2025 alone, Xiaomi delivered over 411,000 vehicles, up more than 200% in just one year.

Two models are driving this success :

• The SU7, a sleek electric sedan competing directly with the Tesla Model 3, quickly became a top seller in China.
• The YU7, an electric SUV launched in mid-2025, is already dominating its segment, leading sales for seven straight months.

At its peak, Xiaomi delivered over 50,000 vehicles in a single month, an insane pace for such a young automaker.

Tech DNA = Industrial advantage

Xiaomi’s secret weapon? Its experience in consumer electronics. Years of producing millions of smartphones taught the brand how to optimize costs, streamline production, and scale fast.

That same mindset applied to cars is paying off. With a gross margin above 24% in its EV division, Xiaomi is outperforming many traditional automakers, some of which are still struggling to make EVs profitable.

The big question now: can Xiaomi sustain this momentum in a market that changes fast? One thing is clear, the rules of the game are being rewritten.