- The Chinese firm had originally expected to sell just 76,000 SU7s this year.
- Analysts predict Xiaomi could deliver as many as 400,000 EVs next year.
- While deliveries are ramping up, Xiaomi’s automotive arm is not profitable yet.
Xiaomi seems to have a hit on its hands with the all-electric SU7 sedan and has raised its sales forecast for the model for the third time this year. While many other car manufacturers, particularly EV startups, have cut sales expectations due in part to economic and inflationary issues, the Chinese technology giant continues to report strong sales.
According to chief executive Lei Jun, Xiaomi expects to end 2024 having delivered 130,000 EVs. This is an increase over the previous target of 120,000 units and is a huge leap from the goal it set at the start of the year to deliver 76,000 SU7s to customers.
Read: Xiaomi SU7 Ultra On Sale From $114K, Watch Prototype Lap The ‘Ring In 6:46
Sales of EVs and plug-in hybrids have surged throughout China this year and now account for more than half of all new car sales. Xiaomi doubled production shifts of the SU7 in June and according to the brand’s co-founder, its factory has the capacity to build 20,000 cars each month.
“Our investment is still very substantial and we continue to improve our hardware and software,” Jun said. “And basically it doesn’t matter what the ultimate delivery level is, we are still investing very heavily. We are working on R&D (research and development) for new models.”
The SU7 has won fans thanks to its attractive styling, impressive performance, abundance of technology, and competitive pricing that makes it cheaper than a Tesla Model 3. Speaking with Reuters, Huatai Securities said it expects Xiaomi to deliver 400,000 EVs in 2025 and believes these vehicles could account for a fifth of total company revenue.
However, Xiaomi’s automotive arm still has a long way to go before reaching profitability. In the third quarter, it reported an adjusted loss of 1.5 billion yuan, or $207 million at current exchange rates. This was a slight decrease from the $252 million loss it posted in the second quarter when it delivered 37,307 vehicles and lost $9,200 on every new car sold.
The recent launch of the Ultra will no doubt help to boost the popularity of the SU7 further. This flagship variant of the sleek sedan has three electric motors delivering 1,526 hp and can hit 62 mph (100 km/h) in 1.98 seconds and 124 mph (200 km/h) in 5.86 seconds.
