On June 3, Xiaomi held its Investor Day event. It was reported that Lei Jun and other Xiaomi executives, including Lu Weibing, discussed topics such as chips, Xiaomi cars, and smartphones.
Smartphone Business:
In 2024, Xiaomi is expected to gain over 13 million net new users, with 5.5 million coming from Apple and Huawei users. Lu Weibing emphasized that "without scale, there is no competitiveness," stating, "Capabilities drive outcomes, and transformation is the key."
Lei Jun shared the impressive results from Xiaomi's new retail attempts in Hong Kong, indicating that Xiaomi would strongly promote this model in developed countries and regions.
Lu Weibing revealed that Xiaomi's offline channel costs for home appliances are 15-20 percentage points lower than competitors. Additionally, Xiaomi stated that it would continue to control hardware profit margins at 5%.
YU7 Pricing to Be Confirmed Days Before Launch
The automotive business is currently a key focus for Xiaomi. During the Investor Day, Lei Jun mentioned that Xiaomi's automotive division is expected to become profitable in the third and fourth quarters of this year.
According to the financial report released by Xiaomi Group, revenue from Xiaomi's smart electric vehicles rose from 18.4 million yuan in Q1 2024 to 18.1 billion yuan in Q1 2025. In Q1 2025, the company delivered a total of 75,869 Xiaomi SU7 series vehicles.
Moreover, the gross margin for Xiaomi's automotive business has been steadily improving, increasing from 20.4% in the previous quarter to 23.2% in Q1 this year. Xiaomi attributed this rise to the different product mix of the Xiaomi SU7 series delivered during the quarter (including the SU7 Ultra) and an increase in gross margins of other related businesses.
Currently, Xiaomi only sells the Xiaomi SU7 model, with official data showing that delivery numbers for both April and May surpassed 28,000 vehicles.
Previously, Xiaomi's first SUV model, the Xiaomi YU7, was unveiled on May 22, positioned as a luxury high-performance SUV, set to officially launch in July.
At the Xiaomi Investor Conference, Lei Jun disclosed that the latest Xiaomi YU7 price could not be the rumored 235,900 yuan, and the official price would be confirmed 1-2 days prior to launch.
After this, Lu Weibing, Xiaomi Group partner and president, mentioned during the Q1 earnings call that the YU7 received widespread appreciation from users after its pre-release, becoming more popular than the SU7 at its debut.
Lu Weibing revealed that the consultation inquiries for the YU7 after its technical announcement exceeded those of the SU7 during the same period, with user interest being about three times greater. The YU7 has a broader audience, and Xiaomi is very confident about it.
Recently, Xiaomi's automotive division stated that it is preparing for large-scale production of the YU7. In response to questions about whether capacity would be sufficient after the YU7's launch and if there would be delays in delivery, Xiaomi expressed confidence in delivering to users as quickly as possible after the official launch.
During the aforementioned Investor Conference, Lei Jun also mentioned that Xiaomi began investing in robotics research and development five years ago. Currently, their automotive factory is testing relevant capabilities, and Xiaomi's automotive chips are under development, expected to be launched soon.
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Source: Caixin, The Paper, Elephant News, Financial
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