GUANGZHOU, China – November 15, 2024 – Visitors view the Xiaomi SU7 Ultra new energy vehicle at the 2024 Guangzhou Auto Show in Guangzhou, Guangdong Province, southern China, on November 15, 2024. via Getty Images)
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Chinese electronics manufacturer Xiaomi Corporation The company’s third-quarter revenue grew 30.5% on strong consumer demand for its first electric vehicle, the SU7 sedan.
Xiaomi launched the car in March, with styling borrowed from Porsche, entering China’s crowded EV market at a compelling price – the base model costs less than $30,000, which is $4,000 cheaper than Xiaomi’s base model Dollar. Tesla’s Model 3 in China.
The company raised its sales target on Monday and now aims to sell 130,000 vehicles this year, far exceeding its original target of 76,000 vehicles. To meet demand, Xiaomi has doubled its production shifts since June and launched its high-end SU7 Ultra model, which sells for more than $110,000.
Revenue for the quarter ended September 30 was 92.5 billion yuan ($12.77 billion), exceeding the 91.1 billion yuan consensus estimate by LSEG’s 15 analysts.
Huatai Securities predicts that Xiaomi will deliver 400,000 electric vehicles in 2025, by which time the proportion of electric vehicles in revenue will increase from 8% this year to about one-fifth.
However, Xiaomi’s automotive business is still losing money. The unit reported an adjusted loss of 1.5 billion yuan for the quarter and a gross profit margin of 17.1%.
According to data from research firm Canalys, Xiaomi continued to maintain its position as the world’s third largest smartphone manufacturer this quarter, shipping 42.8 million units, a growth of 3%, and accounting for 14% of the market share.
Xiaomi reported adjusted net profit rose 4.4% to 6.25 billion yuan, compared with market consensus of 5.92 billion yuan.
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