Chinese company Xiaomi announced that this year it will strive to deliver 120,000 electric vehicles (EVs), surpassing the initial target of 100,000, and will implement dual-shift production to meet the growing demand for its electric vehicles.
Xiaomi announced this during an earnings call after reporting a 27% year-on-year increase in first-quarter revenue, exceeding expectations, primarily due to strong smartphone sales and a market recovery.
Xiaomi began delivering its SU7 electric vehicles to customers in early April, realizing CEO Lei Jun's dream and completing years of efforts to enter the electric vehicle business. This is part of the company's diversification strategy aimed at reducing its reliance on smartphones.
Xiaomi President Lu Weibing stated during the call that dual-shift production will begin next month to ensure monthly deliveries exceed 10,000 vehicles. He mentioned that the demand for the SU7 is very strong, with cumulative orders reaching 88,063 units by the end of last month.
In the first three months of this year, Xiaomi's revenue was 75.5 billion yuan ($10.42 billion), higher than analysts' forecast of 73.3 billion yuan according to LSEG.
Adjusted net income was 6.49 billion yuan, exceeding analysts' estimates of 4.94 billion yuan.
Since the end of last year, the global smartphone market has shown signs of recovery after a period of decline.
According to industry research firm Canalys, Xiaomi's global smartphone shipments grew by 33% in the first quarter, reaching 40.7 million units, helping the company secure a 14% market share, ranking third.
In Xiaomi's largest smartphone market, China, shipments grew by 8.6%, according to research firm Counterpoint.
Lu Weibing stated that the company will begin separately reporting automotive revenue from this quarter.
Analysts from Huatai Securities wrote in a report that Xiaomi's automotive-related revenue is expected to reach 23.7 billion yuan in 2024 and more than double to 50.8 billion yuan in 2025.
Over the past two months, Xiaomi's stock price has risen as investors remain optimistic about its progress in the electric vehicle sector. The current stock price is about 30% higher than at the end of March when Xiaomi announced the pricing for the SU7 series.
The current Xiaomi SU7 series includes three models, priced between 215,900 and 299,900 yuan. As of May 15, Xiaomi had delivered 10,000 electric vehicles.
