Xiaomi Aims to Enter European Market in 2027 with Electric Vehicle Sales

Xiaomi plans to enter the European electric vehicle market in 2027, with the goal of becoming one of the top five global automakers within 15-20 years. The company's success with its first EV, the SUV YU7, has bolstered its ambitions. However, Chinese EV makers face high tariffs in Europe, with potential duties of up to 48%, and are barred from the US market due to 100% tariffs. Despite these challenges, Xiaomi's EV sales have grown, with a 31% increase in Q2 sales and a total of over 157,000 units sold in the first half of the year.

Xiaomi Corp., a leading tech giant, has announced its plans to enter the European electric vehicle (EV) market by 2027, aiming to challenge global giants like Tesla Inc. and BYD Co. This strategic move comes on the heels of a 31% quarterly revenue increase, driven by the successful launch of its second EV, the YU7 SUV, in the northern hemisphere summer. The company aims to become one of the world's top five automakers within the next 15-20 years [1].

Xiaomi's expansion plans were detailed by President Lu Weibing during a post-earnings call. The company has established a network of 335 smart EV sales outlets across mainland China as of June 30, 2025, and intends to continue expanding its sales and service infrastructure domestically to support its growing EV business [2]. Despite the challenges of high tariffs and production crunches, Xiaomi remains optimistic about its prospects in the EV market.

The European EV market is particularly attractive to Chinese automakers. According to a report by market research firm Rho Motion, global EV sales grew by over 21% year-on-year in July, crossing 10.7 million units sold globally. This growth was driven by strong demand in China and significant increases in sales in Europe and North America [3]. However, Chinese EV makers face high tariffs in Europe, with potential duties of up to 48%, including a base 10% import duty and additional countervailing levies of around 35% to 38% [1].

Xiaomi's robust financial performance and ambitious expansion plans position it as a significant player in the global EV market. The company's focus on improving economies of scale and favorable product mix has helped offset headwinds from the smartphone sector. Despite the challenges, Xiaomi's goal is to increase its market share in China by 1% annually and achieve profitability in the EV segment by the end of 2025 [1].

References:
[1] https://www.bloomberg.com/news/articles/2025-08-19/xiaomi-s-revenue-rises-31-after-second-ev-fires-up-consumers
[2] https://www.azernews.az/region/246251.html
[3] https://www.benzinga.com/markets/tech/25/08/47083308/ev-sales-surge-in-europe-china-tesla-slips-while-byd-grows-300-in-uk