Chinese tech company Xiaomi has announced its intentions to enter the electric vehicle market in Europe by 2027. This decision follows successful EV sales in China.
Xiaomi's Expansion Plans in Europe
President Lu Weibing stated that the company is considering applying its business model, successful in China, to global markets, including Europe. While there is currently no specific product plan in place, the company is actively researching the European market and preparing for its entry by 2027.
Company's Financial Results and Challenges
Q2 2025 was a record quarter for Xiaomi, delivering over 81K vehicles and generating approximately $2.87 billion in EV sales. However, the company faces challenges with high export tariffs to Europe totaling 48%, including a base import duty of 10% and additional countervailing levies. The company's president noted that a profitable shift in the automotive sector is expected in H2 2025, despite current losses.
Competition with Global Players
Ford's CEO, Jim Farley, admitted that Chinese car manufacturers like Xiaomi are ahead in quality and technology. While Xiaomi aims for stable growth, recording a quarterly revenue increase of 31%, the market remains competitive. The company's founder, Lei Jun, confirmed that priority will be given to meeting domestic demand before considering international markets.
Xiaomi is actively developing its strategy for entering the European EV market, relying on successful results in China. However, the company faces significant challenges, including high export tariffs and competition on the global stage.
