Xiaomi, a tech giant increasingly making waves in the automotive industry, has reported its first quarterly operating profit from its electric vehicle (EV) business. This milestone comes approximately nineteen months after the company unveiled its first electric sedan, the SU7.
The profitability of Xiaomi’s EV division is a significant step forward for the brand, which continues to grow at an impressive pace within a highly competitive market. In Q3 2025, the business unit generated an operating profit (EBIT) of 700 million yuan ($85 million), showcasing strong growth from its revenue stream that amounted to 29 billion yuan.
Breaking down these figures further reveals that electric vehicles alone accounted for a substantial portion of this income. In Q3, Xiaomi’s EVs contributed approximately 28.3 billion yuan in revenue – a year-on-year increase of 199%. The company attributes much of its success to the increased sales volume and higher selling prices.
Deliveries of Xiaomi’s electric vehicles rose from 81,302 units in Q2 to an impressive 108,796 units in Q3. This represents a massive growth rate of 33.8% compared to the previous quarter and a staggering 173.4% increase year-over-year. Additionally, the average selling price (ASP) per vehicle increased by 9%, from approximately 238,650 yuan to 260,053 yuan.
One of the key drivers behind Xiaomi’s success has been its strong performance in SUV sales with the YU7 series. According to the company, this model ranked first in China’s SUV market during October 2025. This achievement is partially attributed to a more extensive distribution network consisting of 402 sales centers across 119 cities and 209 service centers spread over 125 cities.
The gross profit margin for Xiaomi’s EV business has also seen significant improvement, rising from 17.1% in Q3 2024 to a robust 25.5% in the current quarter. This growth can be attributed to lower manufacturing costs per unit and higher prices, along with the launch of the SU7 Ultra model that commenced deliveries in March 2025.
Xiaomi’s entry into the EV market has been swift and impactful, demonstrating the potential for established tech companies to make a significant mark in this rapidly evolving sector. The company’s ambitious sales forecast now stands at 400,000 units for the year, up from its previous target of 350,000.
As Xiaomi continues to scale and innovate within the EV space, it sets a precedent for other tech firms looking to diversify their offerings. With such rapid growth and profitability in just under two years since launching its first vehicle, Xiaomi’s journey is not only an impressive story but also a testament to the growing acceptance of electric vehicles globally.
