In Q2 2025, Xiaomi showcased impressive financial results exceeding analyst expectations, primarily fueled by its electric vehicle segment.
Xiaomi's Revenue and Profit Growth
Xiaomi reported a 31% year-on-year increase in revenue for Q2 2025, reaching 116 billion yuan ($16.2 billion). This subtly surpassed analyst forecasts of approximately 115 billion yuan. Net profit nearly doubled, standing at 11.9 billion yuan.
Surge in Electric Vehicle Sales
According to data, Xiaomi delivered 81,302 cars between April and June, pushing the total for the first half of 2025 to over 157,000 vehicles. The success is linked to the launch of their second electric car, the YU7, which saw such high demand that customers now face a wait of over a year. Despite issues with production capacity, the company continues to increase sales.
Competition with Tesla and Other Ventures
Xiaomi has invested $10 billion in its electric vehicle business, aiming to break into the top five automotive brands globally. Meanwhile, Tesla is facing challenges in the Chinese market, with sales down 4.3% in Q2 2025. Xiaomi is also planning to invest $7 billion in semiconductors, further expanding its technological presence alongside cars and smartphones.
The Q2 results indicate that Xiaomi is moving forward decisively despite challenges, showing stable growth through diversification even as smartphone sales decline.
