Five EV Startups Collectively Achieve Profitability

[Market Update] In 2025, five leading Chinese EV startups collectively crossed the profitability threshold.

Key Developments: Xiaomi, Li Auto, and Leapmotor Achieve Annual Profitability; NIO and XPeng Reach Quarterly Profitability

Xiaomi Auto reported its first-ever annual revenue exceeding RMB 100 billion in 2025, reaching RMB 106.1 billion, with an operating profit of RMB 900 million. Leapmotor posted a full-year net profit of RMB 540 million, becoming the second EV startup to achieve annual profitability. Li Auto continued its streak of consecutive profitable quarters.

Strategic Foundation: Economies of Scale and Product Portfolio Upgrading Drive Profitability

Xiaomi delivered 411,082 vehicles in 2025, a 200% year-over-year increase. A higher proportion of premium trims boosted its gross margin to 24.3%. Industry observers widely agree that 2025 merely marks the initial emergence of profitability, with intelligent driving capabilities transitioning from a competitive advantage to a market entry requirement.

Industry Impact: Accelerated Market Consolidation and Emergence of a "Winner-Takes-Most" Landscape

Brands such as WM Motor, Neta Auto, and HiPhi have already exited the market. Surviving companies now face intensified competition centered on AI and vehicle intelligence, with valuation frameworks shifting toward "AI-defined vehicles."