- A subsidiary of Xiaomi has secured a new land plot for RMB 635 million ($88.39 million), which is expected to be used for the third phase of its EV factory.
- Xiaomi will officially launch the YU7 SUV in a few days.
A Xiaomi (HKG: 1810, OTCMKTS: XIACY) subsidiary has secured a new plot of land in Beijing, which may be used for the smartphone giant's electric vehicle (EV) business.
Xiaomi Jingxi Technology Co Ltd, a wholly-owned subsidiary of Xiaomi, secured the land plot in Beijing's Yizhuang area on June 19 for RMB 635 million ($88.39 million), according to an announcement by the Beijing Economic and Technological Development Zone yesterday.
The plot covers an area of 485,133.91 square meters with a 50-year lease term, adjacent to the first and second phases of Xiaomi's EV factory.
It will be used for the construction of a new energy intelligent connected vehicle manufacturing project, according to a previous announcement.
Xiaomi officially announced its entry into the automotive industry on March 30, 2021. In late November 2021, it signed an agreement with the Yizhuang authorities to build a car factory with an annual production capacity of 300,000 vehicles there.
The factory will be constructed in two phases, with an annual production capacity of 150,000 vehicles each for phase 1 and phase 2, according to an announcement at the time.
The first phase of Xiaomi's EV factory was completed and put into use in 2023, while the second phase began construction last year.
On May 20, a report by domestic media outlet Time Weekly cited on-site construction workers as saying that the second phase of the factory is was in its final stages and was expected to be completed by mid-June.
Additionally, according to a report by Cailian, after the second phase of the factory is completed in June, it will undergo inspections by Xiaomi and the local housing development bureau, with formal production expected to begin in July or August.
Xiaomi officially launched the SU7 electric sedan on March 28, 2024, marking its first model and a direct competitor to Tesla's (NASDAQ: TSLA) Model 3.
On February 27, Xiaomi rolled out the SU7 Ultra, an electric sedan based on the standard SU7 model, featuring a maximum power output of 1,548 Ps.
Despite being a late entrant in China's EV industry, Xiaomi has already achieved significant success. Customers who have ordered the SU7 are still facing a waiting period of up to 51 weeks, according to information from the Xiaomi EV App.
The SU7 series delivered over 28,000 units in May, marking the eighth consecutive month with monthly deliveries exceeding 20,000 units.
On March 18, Lei Jun, Xiaomi's founder, chairman, and CEO, announced on Weibo that the company had raised its 2025 annual vehicle delivery target to 350,000 units. This represents an increase of 50,000 units, or 16.67 percent, from the previous target of 300,000 units.
Xiaomi EV had been working to boost production capacity and has made some progress, Lei said at the time.
For Xiaomi, the YU7 may be a more important model than the SU7, as Chinese consumers prefer SUVs (sport utility vehicles) with larger interior spaces.
Lei said on Weibo on June 16 that the YU7 will be launched at the end of June, which is earlier than the previously announced July launch date.
($1 = RMB 7.1844)
