Why is SU7 "selling like hotcakes" but Xiaomi is still losing money?
In its recently released Q1/2025 financial report, Xiaomi recorded positive results from its electric car business when it delivered a total of 75,869 SU7 units.
Báo Khoa học và Đời sống•31/05/2025
However, the company still reported a net loss of 500 million yuan (about 1.8 trillion VND) in this field. According to the report, revenue from the Xiaomi SU7 electric vehicle reached 18.1 billion yuan (about 65.3 trillion VND), while related activities such as services and technology contributed an additional 500 million yuan (about 1.8 trillion VND). Gross profit margin of electric vehicles and AI innovation segment in Q1 reached 23.2% - a positive figure compared to the early stage of high-tech product development.
However, operating losses still amounted to 500 million yuan (about 1.8 trillion VND), equivalent to an average loss of 6,500 yuan (about 23.4 million VND) for each SU7 car sold. This is a big step up from 2024, when Xiaomi reported a net loss of 6.2 billion yuan (about 22.37 trillion VND) with 136,854 vehicles delivered, equivalent to an average loss of about 45,000 yuan (about 162.3 million VND) per vehicle. Xiaomi President Lu Weibing explained that the company’s auto business is still in its early stages and has not yet reached optimal economies of scale. The large initial investment costs in infrastructure, core technology, and internal production ecosystem are the main factors causing Xiaomi to continue to record losses.
“According to the general industry model, losses in the early stages are inevitable. However, as production increases, economies of scale will significantly reduce costs,” he added. With strong sales, especially for the high-end SU7 Ultra, Xiaomi expects to approach break-even or profit in the second quarter. In addition to the SU7 sales results, Xiaomi also revealed its next electric vehicle model, the YU7, which is attracting great attention from the market. Mr. Lu revealed that just a few days after its announcement, the number of users leaving contact information about the YU7 was 3 times higher than that of the SU7 at the same stage.
The YU7 is expected to start at 245,900 yuan ($36,000), directly competing with the new Tesla Model Y. Xiaomi also confirmed plans to expand factory capacity to meet rapidly growing market demand. The company said it had delivered a total of more than 258,000 SU7 vehicles by the end of May 2025. With the current growth momentum and positive feedback from the market, the smart electric vehicle segment is gradually becoming a new strategic pillar of Xiaomi, alongside the mobile device and AI ecosystem sectors.
Video : Introducing the Xiaomi SU7 Ultra electric car.
Báo Khoa học và Đời sống•31/05/2025
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