Xiaomi EV Unit Turns First Annual Profit
Xiaomi posts first operating profit in its EV and AI segment as revenue surges over 223% in 2025, driven by strong vehicle deliveries and higher margins.
Xiaomi reported its smart electric vehicle and AI business turned profitable for the first time in 2025, marking a key milestone as deliveries accelerated sharply during the year. The segment posted an operating profit of 900 million yuan, according to earnings released on Tuesday.
Revenue from the smart EV and AI segment surged 223.8% year-on-year to 106.1 billion yuan, equivalent to about $15.4 billion. The strong growth reflects rapid scaling in Xiaomi’s automotive business, which has quickly become a major revenue contributor.
Electric vehicle sales dominated the segment’s performance, generating 103.3 billion yuan in revenue. This highlights Xiaomi’s increasing reliance on its EV portfolio as it expands beyond its traditional smartphone and consumer electronics base.
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The segment’s gross margin rose to 24.3% in 2025, up by 5.8 percentage points from the previous year. The improvement was supported by a higher contribution from premium and better-margin vehicle models.
Quarterly performance also showed strong momentum. In the fourth quarter alone, the segment reported revenue of 37.2 billion yuan and an operating profit of 1.1 billion yuan, indicating improving profitability as scale increased.
Xiaomi delivered a total of 411,082 vehicles خلال 2025, representing a sharp year-on-year increase of 200.4%. The average selling price of its vehicles rose 7.1% to 251,171 yuan, suggesting stronger demand for higher-end variants.
Monthly delivery trends showed continued acceleration toward year-end. Deliveries reached a record 50,212 units in December, driven largely by strong demand for the YU7 electric SUV.
The YU7 model accounted for 39,089 units in December, making up 77.85% of total monthly deliveries. In contrast, deliveries of the SU7 sedan series declined during the period due to an ongoing product transition cycle.
Looking ahead, Xiaomi has set an ambitious target to deliver 550,000 vehicles in 2026, signaling continued expansion in its EV business. The company also recently launched a new-generation SU7 sedan, aiming to refresh demand and support future growth.
The latest results underline Xiaomi’s rapid progress in the competitive electric vehicle market, with improving margins, rising volumes, and its first full-year operating profit positioning the segment for further scale in 2026.