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Xiaomi Battles Slump with EV Growth, AI Push
24 Mar
Summary
- Xiaomi's quarterly growth slowest since 2023; EVs offset phone slumps.
- Electric vehicle sales more than doubled, boosting profits.
- Smartphone shipments declined 11.5% amid memory shortages.
Xiaomi experienced its slowest quarterly growth since 2023, with a 7.3% increase in revenue to 116.9 billion yuan ($17 billion) in the December quarter. This performance was largely due to a significant surge in electric vehicle (EV) sales, which more than doubled year-over-year, driven by a popular SUV launched last summer.
EVs have become a critical growth sector for Xiaomi, diversifying its portfolio beyond smartphones and gadgets. The EV division reported its second consecutive profitable quarter. However, the company's core smartphone business is struggling with higher memory prices, contributing to an 11.5% decline in shipments, even as the global market saw a slight increase.
Looking ahead, Xiaomi aims to deliver 550,000 cars in 2026 and plans to expand its EV sales to Europe by 2027. The company is also investing in AI agent development to compete with domestic rivals. Despite these efforts, Xiaomi's stock has fallen over 40% from its 2025 peak, amidst an intense price war in China's EV market and rising material costs.
