Chinese Smartphone Giant's Expansion into European EV Market Could Create Challenges for Tesla | Carscoops

      The Chinese technology powerhouse is expected to introduce its entire lineup of electric SUVs along with the SU7 sedan in Europe.

      Xiaomi aims to penetrate the European electric vehicle market by 2027, positioning itself to compete with established players like Tesla and BYD.

      The company anticipates that its automotive segment will reach profitability by the close of this year.

      Xiaomi has enlisted former BMW and Formula 1 professionals to assist in establishing its new R&D center in Europe.

      Xiaomi’s foray into the automotive industry has been quite remarkable. Just under two years ago, the company was not even manufacturing any cars; now, it is producing the well-received SU7 sedan and YU7 SUV, both of which have garnered positive feedback from customers and critics alike. By 2027, Xiaomi aims to extend its competition beyond China.

      The firm has had its sights set on international expansion for a while but has been discreet about its target markets. Recently, during an earnings call, Xiaomi’s president, Lu Weibing, announced that the company plans to enter the European market by 2027 to take on competitors like BYD and Tesla.

      Xiaomi’s automotive growth is bolstered by robust performance in its domestic market. In the second quarter of 2025 alone, the company delivered 81,302 vehicles, bringing the first-half total to 157,000. With production of the YU7 ramping up, deliveries are projected to rise, though some customers are already experiencing waiting periods exceeding a year.

      Despite rapid growth in sales, Xiaomi’s automotive division reported a loss of around 300 million yuan ($41 million) in the last quarter. Nevertheless, co-founder Lei Jun recently indicated that the division is expected to turn a profit in the latter half of 2025, according to Bloomberg.

      Earlier this year, it was disclosed that Xiaomi is in the process of hiring talent for its new European R&D center. Notable recruits include Rudolf Dittrich, who has previously worked at BMW and with the Williams and Sauber Formula 1 teams, alongside former BMW employees Dusan Sarac and engineer Jannis Hellwig.

      It remains uncertain which Xiaomi vehicle will be the first to debut in Europe, but the company likely aims to market both the SU7 and YU7 in the region. Additionally, Xiaomi is actively developing a third model, currently referred to as the YU9, which will be a large SUV featuring a 1.5-liter turbocharged engine and two electric motors, categorized as an Extended-Range Electric Vehicle (EREV).