Xiaomi continues to lose money on car sales!

Despite high demand for its SU7 sedan, which has Chinese buyers waiting nearly a year, and plans to heat up the SUV market with the YU7, the company reported a loss of approximately 500 million yuan ($69.4 million) from car sales in Q1.

Compared to Q4 2024 (~$100 million loss), Xiaomi shows a more positive outlook. The company is expected to reach profitability after activating its second car factory.

Since March 2024, Xiaomi has sold over 230,000 SU7s, with a 2025 target of 350,000 vehicles. It already hit 103,000 sales in the first four months.

In the competitive automotive sector it recently entered, Xiaomi’s trump card is its mastery of core technologies. The company, which allocated $27.8 billion for R&D over the next five years, reported total revenue across all sectors of $15.45 billion and a profit of $1.49 billion in Q1 2025.