Xiaomi Corp., known for its innovative electronic products, is making significant strides in the electric vehicle market. The company has increased its planned production volume of electric vehicles to 350,000 units by 2025, highlighting its ambitious goals and commitment to capturing a share of the rapidly growing market.

Achievements and Progress

The company's primary focus is on expanding production capacities following the successful launch of its first SU7 sedans in April 2024. Lei Jun, the billionaire co-founder of Xiaomi, announced substantial progress through China's Weibo platform. Recent quarterly results showed a 49% increase in revenue, reaching 109.01 billion yuan (approximately $15.1 billion), indicating that the move into electric vehicles is yielding positive outcomes.

Challenges with Production Capacity

Despite this promising start, Xiaomi faces several challenges. The company is experiencing limited production capacity, which has led to increased wait times for customers. In response, the management has committed to optimizing production processes to accelerate deliveries. To this end, the construction of a second phase of its vehicle plant in Beijing is underway, which is expected to significantly boost production volumes.

Competition and Future Outlook

Xiaomi enters a market traditionally dominated by giants like Tesla Inc. and BYD Co. However, over the past year, the company’s stock has quadrupled, reflecting a growing interest from investors.

To meet its ambitious targets, Xiaomi plans to focus on the following areas:

1. Increasing production capacity to reduce wait times for customers;

2. Developing new electric vehicle models that can compete with those offered by Tesla and BYD;

3. Expanding its engineering and research divisions to incorporate new technologies.

Long-term Company Goals

Previously, Lei Jun set a target to produce 300,000 vehicles this year. This effort aims not only to solidify Xiaomi’s presence in the electric vehicle market but also to diversify its business beyond traditional mobile phones and smart devices.

Current Achievements in Numbers

• Planned electric vehicle deliveries increased to 350,000 units by 2025;

• Revenue for the December quarter reached 109.01 billion yuan;

• Company stock has increased fourfold over the past year.

Xiaomi Corp. is actively moving towards diversifying its business by entering the electric vehicle market. With significant revenue growth and rising stock prices, the company is navigating initial challenges related to production capacity. In the future, Xiaomi aims to play a vital role in the sector, actively competing with established leaders while simultaneously expanding its business into new areas.