China’s Xiaomi Corporation has revealed ambitions to break into the European electric vehicle (EV) market by 2027.
This announcement comes on the heels of the company’s foray into the EV sector within China, which has seen significant growth over the past year.
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Xiaomi provided insights into the company’s expansion strategy following a notable 30.5% increase in overall quarterly revenue during the June quarter, reaching 116bn yuan ($16.2bn).
Its financial report indicated that the company’s smart EV, AI, and other initiatives produced 21.3bn yuan in revenue in the second quarter (Q2) 2025.
Xiaomi’s vehicle deliveries for Q2 2025 stood at 81,302 units, representing a 197.7% year-on-year (YoY) growth compared to the same period in the previous year.
The company’s network of EV sales centres has also expanded, with 335 locations now spread across 92 cities, and a net addition of 100 sales centres quarter over quarter.
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By GlobalDataThe EV division’s losses have narrowed to approximately 300m yuan during the quarter. Additionally, the gross margin for Xiaomi’s businesses, which includes smart EVs and AI, improved to 26.4% in Q2, up from 15.4% in the previous year period.
According to data from the China Association of Automobile Manufacturers (CAAM), sales of Chinese-made vehicles, including exports, experienced a near 15% YoY increase to 2.593 million units in July 2025.
This comes after a 5% decline to 2.262 million units the year before. Domestic sales saw a 13% rise to 2.018 million units, while exports surged by 23% to 575,000 units.
In June, Xiaomi launched the YU7, its first battery-powered SUV model. The launch was a significant event for Xiaomi’s automotive business, with local reports indicating that the automaker received over 200,000 confirmed orders for the new model within an hour of its unveiling.
Furthermore, in the same month, Xiaomi secured a 50-year lease for a 485,134m2 plot of land in Beijing, China, for smart connected car and components projects.
The Beijing municipal planning and natural resources commission announced the deal, valued at 635m yuan ($88m).
In March, Xiaomi agreed to raise $5.5bn through a placement and subscription agreement involving the sale and issuance of 800 million shares.
