Xiaomi Delivers 80,856 Vehicles in Q1; Supply Gap of Hit Models Raises Concerns

[Company Update] Xiaomi delivered 80,856 vehicles in Q1 2026, facing revenue pressure but showing early signs of systematic capabilities.

Core Developments: SU7 Supply Gap and YU7 Production Line Issues Disrupt Delivery Pace

This quarter, Xiaomi Auto delivered 80,856 vehicles, a notable slowdown compared to the full-year 2025 high of 411,000 units. The primary reasons were the transition gap between old and new SU7 models and production line planning issues for the YU7, which caused slower-than-expected capacity ramp-up.

Key Metrics: Emerging Businesses Generate RMB 19.9 Billion in Revenue; Smartphone Segment Under Pressure

Revenue from automotive and other emerging AI-driven businesses reached RMB 19.9 billion, accounting for approximately 20% of the group’s total revenue of RMB 99.1 billion. Adjusted net profit stood at RMB 6.1 billion, though the smartphone business showed weak growth amid sustained high R&D investment.

Strategic Foundation: Hit-Product Strategy Struggles to Address Long-Cycle Competitive Challenges

Lei Jun continues to adhere to a "hit-product strategy," relying solely on two models—SU7 and YU7—to capture the market. However, in the automotive sector, product lifecycles and supply chain complexity far exceed those of smartphones, making it difficult for a single hit model to sustain long-term competitiveness.