Xiaomi Auto Reports Massive Q1 Loss of RMB 3.1 Billion

[Company Financial Report] Xiaomi Group's Q1 2026 profit halved year-over-year, with its automotive segment posting a loss of RMB 3.1 billion.

Core Development: Automotive Becomes Second-Largest Business Amid Deep Losses

Revenue from the Smart Electric Vehicles and AI Innovation Business segment reached RMB 19.9 billion, accounting for 20.0% of the group’s total revenue, making it the second-largest business segment for the first time. Of this, vehicle sales alone contributed RMB 19 billion, with 80,856 units delivered, up 6.6% year-over-year.

Key Metrics: Plunging Profits and Margin Pressure

Total group revenue stood at RMB 99.14 billion, down 10.9% year-over-year; adjusted net profit was RMB 6.072 billion, a 43.1% decline from the same period last year. The automotive business reported a single-quarter loss of RMB 3.1 billion, with gross margin falling to 20.1%, a significant drop compared to the prior-year period.

Strategic Dilemma: High Investment for Market Share or a Bleeding Trap?

Despite order reservations exceeding 80,000 units and slight revenue growth, the massive losses have raised questions about the sustainability of its strategy. Xiaomi Auto remains in a phase of production ramp-up and heavy technology investment, making short-term profitability pressure difficult to avoid.