Mi Motorship Delivers Sustained Investment in Innovation

In light of the publication of Xiaomi Corporation's 2024 Full-Year Financial Report on March 18, Mi Group CEO Lei Jun has addressed concerns surrounding the company's profits from Mi Motors. According to Lei Jun, Xiaomi aims to achieve a gross margin rate exceeding that of the first quarter for automotive business by 2025.

Currently, the automotive division is still in an investment-intensive phase, with strategic bets placed on technological research and development, multiple vehicle models, factory construction, and the introduction of autonomous driving technologies. Apart from these disclosed efforts, some further investments are also being made, though certain details remain unavailable for now.

Data released on March 18 shows that the revenue generated by Xiaomi's innovative business division, encompassing smart electric vehicles, reached RMB 32.8 billion, with the smart electric vehicle segment accounting for RMB 32.1 billion in revenue. For 2024, this segment achieved a gross profit margin of 18.5%, but also incurred a net loss of RMB 62 million following financial adjustments. The delivery figure for Xiaomi's SU7 model reached 136,854 units by the end of last year, generating losses exceeding RMB 40,000 per unit when averaged.

In a recent social media post, Xiaomi CEO Lei Jun announced that Mi Motors is expected to deliver some 350,000 vehicles in full-year 2025, marking an increase more than two-and-a-half times that seen for the previous period. According to Lei Jun's explanation, this represents further substantial efforts aimed at increasing production capacity while also exploring potential improvements at existing factories and mobilizing suppliers to secure necessary supplies.

By bolstering its capabilities through these initiatives, there remains substantial room for growth under the original planned target of 300,000 vehicles.