Key Points
Xiaomi is beginning to prepare to find a European showroom location for electric vehicles and is planning to expand in the region, so it can even build cars locally in the future. Last month, the company at Beijing headquarters announced plans to bring electric vehicles, which became popular in Europe in 2027, to Europe. The move will place Xiaomi on Chinese EV players, including Xpeng and Guangzhou automotive groups, which are about to expand in Europe. In a wide range of interviews aired on Thursday, the company’s vice president, Xu Fei, revealed details about Xiaomi’s plans to launch an electric vehicle in Europe in 2027. “We had field research in June. With some executives leading the field research, we are preparing our sales network for the partnership,” Xu said of Xiaomi’s EV plan. “The whole organization is beginning.” Xiaomi entered the EV market only with its SU7 sedan last year, followed by a sports utility vehicle called the Yu7. Since then, the company has delivered over 300,000 vehicles. The success of the electric vehicle entry has raised its shares by about 170% over the past 12 months, making the ambitions of non-Chinese cars a key focus for investors. 1810-HK 1y Mountain Xiaomi stock has skyrocketed over 170% over the past 12 months. Xu said the company is likely to open showrooms in Europe, as well as showrooms in China. “Users need to experience the car, not just the test drive… they need to understand the ecosystem,” Xu said, referring to the company’s suite of products, ranging from smartphones to home appliances. Xu did not reveal which model Xiaomi is planning to launch in Europe, but said the company “will not design an entirely new product.” Xiaomi’s deployment will encourage the European Union to maintain tariffs on imports of Chinese-made EVs, and to consider local production and think about launch strategies. Xu told CNBC that building a production facility is not a “first step” in Xiaomi’s EV journey in Europe, but it will likely be in the future. “In theory, I think (in the future, we’ll definitely do that,” Xu said in response to a question about whether the company is thinking of manufacturing cars in Europe. “The logic is very simple. We want to be one of the top five players in the world in 15-20 years. If we want to do so, you definitely need to have your own factory here, right?” Xu said. Xiaomi’s 2027 European launch will push it into the market where domestic rivals from XPENG to BYD have already won their high ambitions and are laying out. For example, Guangzhou’s automotive group aims to increase sales of European electric vehicles by 17 times over the next two years, and is also exploring local manufacturing. Xu defended Xiaomi’s slow approach. “We need full-time to prepare all these kinds of things to make sure our cars are solid enough for people here in the European market… because… we need to set very high standards,” she said. “When we enter the market, we are very committed. And it’s not just the random Chinese products that we come here to the European market. It’s a product and has the best user experience for European users.”
