Xiaomi’s first EV pulls in US$900 million in second quarter
- Xiaomi’s EV business, while operating at a loss, has seen higher than expected deliveries after ramping up production
The Beijing based company saw second-quarter revenue rise 32 per cent year on year to 88.9 billion yuan amid strong smartphone sales and faster EV deliveries. Profits were up 38.3 per cent year on year to 5.1 billion yuan, according to the company’s financial statement released after market close on Wednesday.
Xiaomi shares closed down 0.9 per cent in Hong Kong on Wednesday to HK$17.52 (US$2.50).
Xiaomi delivered 27,307 SU7s in the three months through June, with the EV business generating a net loss of 1.8 billion yuan. However, the company said the business has a “healthy gross profit margin” of 15 per cent, which it attributed to higher than expected deliveries. Xiaomi president Lu Weibing said during an earnings press conference that the company’s monthly deliveries reached around 10,000 in June after ramping up capacity
This is the first time Xiaomi has disclosed the financials of its EV unit since launching the SU7 in March, when founder and CEO Lei Jun said the company would be selling the cars at a loss. The company’s aggressive pricing comes amid intensified competition and a saturated EV market. The business unit lost an average of 65,900 yuan per car delivered in the June quarter.
Lu attributed the loss to Xiaomi’s limited EV market share and the high development cost of its first car.
