Xiaomi's EV and AI Division Turns Its First Annual Profit as Revenue Triples

Xiaomi’s electric vehicle and AI business achieved its first annual operating profit in 2025, reaching 900 million yuan ($124 million). The milestone comes as the company’s revenue in this segment more than tripled compared to the previous year, reflecting strong market demand for its SU7 sedan and related technologies.

The financial turnaround underscores Xiaomi’s aggressive push into the smart EV sector, which has faced intense competition and pricing pressures in China. The company has been investing heavily in R&D and manufacturing capacity, with its Beijing plant ramping up production throughout 2025.

According to the company’s annual report, the EV and AI unit’s revenue surged to approximately 90 billion yuan, driven by deliveries of the SU7 and expanding software and AI services. Xiaomi also highlighted improvements in operational efficiency and cost management as key factors behind the profitability.

Industry analysts view this as a significant validation of Xiaomi’s diversified strategy, which blends hardware, software, and mobility. The company plans to launch new models and expand its AI-driven autonomous driving features in 2026, aiming to solidify its position in the competitive EV landscape.