The move marks the first overseas foray for Xiaomi's cars, which have proved enormously popular in China and wowed Western auto executives.

Xiaomi's advanced electric sedan is grabbing headlines on the track and in the streets. The SU7 Ultra recently secured the title of fastest production electric vehicle (EV) to lap the Nurburgring Nordschleife.

GUANGZHOU -- Chinese tech group Xiaomi expects to see the first profit in its electric vehicle business in 2025, a little over a year after entering the EV market, as it tries to strike a balance between price and performance.

China is one of the largest EV markets in the world and an important market for Tesla. Competition is increasing and a smartphone company is the latest to challenge Tesla.

A rise in shipments of smartphones, especially in Southeast Asia, helped to boost Xiaomi's second-quarter revenue by 30.5%, the smartphone and EV company said on Tuesday, against the backdrop of a sluggish global market.

That said, smartphone revenue and ASP slipped this quarter. Xiaomi follows up on its record-setting Q1 with a similarly strong Q2 result this year.

Premiumization strategy accelerates, fueling strong growth across smartphones, smart EVs, and smart home appliances Beijing, Hong Kong, August 19, 2025 —

Xiaomi plans to enter Europe’s EV market by 2027 and compete with Tesla and BYD. The company expects its car division to become profitable by the end of this year. BMW and F1 veterans have joined Xiaomi to develop its new European R&D center.