Xiaomi EV unit records Q1 operating loss amid model shift

Xiaomi’s electric vehicle arm reported an operating loss of RMB 3.1 billion for the first quarter of 2025. The figure reflects the combined impact of a period of low seasonal demand and the ongoing transition to new vehicle configurations. Despite delivering more cars than in the same period last year, the company’s bottom line took a hit during what is typically a quieter stretch for auto sales.

The loss highlights the financial strain as Xiaomi invests heavily in expanding its EV lineup and production capacity. While delivery growth signals strong consumer interest, the company continues to navigate the high costs associated with scaling up and refreshing its product range. The holiday period also reduced output and sales volumes relative to other quarters, exacerbating the shortfall.

Looking ahead, Xiaomi is likely banking on a rebound in demand as the year progresses and new models gain traction. With the EV market becoming increasingly competitive, the company’s ability to achieve profitability will depend on how quickly it can optimize its production costs and deliver on its ambitious growth plans.