TLDRs;
Contents
- Xiaomi plans to begin selling electric vehicles internationally in 2027, focusing first on satisfying domestic demand.
- The SU7 sedan and YU7 SUV are driving strong sales at home, but long delivery delays are testing consumer patience.
- Production capacity remains a bottleneck, with Xiaomi working to scale from 150,000 units annually to meet demand.
- The company’s aggressive pricing strategy is reshaping EV competition and could play a pivotal role in its global expansion.
Xiaomi has confirmed plans to begin selling its electric vehicles outside China in 2027, as CEO Lei Jun announced during a livestream on July 2.
While the tech giant’s global ambitions are clear, the company is opting for a phased rollout that begins with shoring up its domestic operations before venturing abroad.
The announcement comes at a time when Xiaomi’s EVs are rapidly gaining traction at home. Its debut model, the SU7 sedan, has consistently outperformed Tesla’s Model 3 in monthly sales since late 2024. Meanwhile, the company’s newly launched YU7 SUV attracted over 240,000 orders within just 18 hours of going on sale, signaling extraordinary consumer interest.
However, this success has also led to challenges, with some buyers complaining about delivery timelines stretching beyond a year. Xiaomi has since acknowledged the production delays and is working to scale capacity, although no concrete roadmap has been shared.
Domestic dominance before international dreams
Xiaomi’s decision to delay international sales reflects a strategic move commonly seen among Chinese EV makers. Like predecessors GAC Motor and NIO, the company is following a playbook that emphasizes perfecting the product and building local scale before expanding abroad.
Industry analysts say this cautious approach is born from lessons learned by earlier brands that struggled after entering foreign markets prematurely.
By focusing on the Chinese market first, Xiaomi can refine its manufacturing processes, ensure vehicle quality, and secure brand loyalty. This approach has already begun to pay off. The company currently operates a facility in Beijing with an annual production capacity of 150,000 units. A second phase of expansion is expected to double that output. Only after stabilizing production and establishing profitability will Xiaomi turn its attention to global markets.
Production bottlenecks slow momentum
Despite surging demand, Xiaomi’s ability to fulfill orders remains its biggest short-term challenge. The company has managed to boost monthly production from 4,000 vehicles in March 2024 to 28,000 by May 2025. Yet this still falls short of meeting current demand. Wait times of up to 60 weeks for the YU7 are testing consumer patience and risk tarnishing the brand’s early momentum.
These manufacturing constraints mirror the difficulties Tesla once faced during its Model 3 expansion. Industry observers note that Xiaomi must now strike a careful balance between increasing output and maintaining product quality. With expectations high and patience thin, even a slight slip could result in cancellations or reputational damage.
Aggressive pricing reshapes EV competition
One of Xiaomi’s key advantages lies in its pricing strategy. The YU7 is priced at around $35,300, roughly $1,460 less than Tesla’s Model Y. This aggressive pricing has helped the SU7 gain a foothold in a highly competitive market, where affordability often trumps brand loyalty. The approach is part of a broader trend in China, where local players like BYD are also slashing prices to lure consumers.
With government subsidies for EVs set to wind down, Chinese automakers are being forced to absorb costs and compete on efficiency. Xiaomi’s ability to sustain its price edge, while scaling internationally, will likely determine how successful its global expansion becomes.
Global roadmap takes shape slowly
Although the 2027 target gives Xiaomi ample time to build its capabilities, it also places pressure on the company to resolve internal challenges quickly. Lei Jun has not ruled out earlier international trials, but any such moves would be limited and experimental.
As the global EV market becomes more crowded, Xiaomi’s careful yet confident approach may offer a model for other late entrants. For now, its focus remains squarely on dominating the home market before taking its EV story worldwide.
