Xiaomi expects to deliver over 400,000 EVs in 2025

Xiaomi expects to deliver more than 400,000 cars this year, after being on track to reach its earlier goal of 350,000 units by this week.

The Beijing-based company, known for its consumer electronics, reported that its EV and AI division posted a profit of 700 million yuan (US$98 million) in the latest quarter, roughly 19 months after launching its first SU7 EV sedan.

Xiaomi marked its 500,000th vehicle coming off the production line this week.

The company faces rising costs due to a global memory chip shortage, and a phased reduction in China’s EV tax incentives, which could impact demand.

Xiaomi’s share price has lost much of its earlier gains this year, making it the worst-performing Chinese tech stock.

🔗 Source: Bloomberg

🧠 Food for thought

Implications, context, and why it matters.

Xiaomi’s smart EV, AI, and new initiatives segment posted RMB 700 million operating profit in Q3 2025. That equals 6,434 yuan per vehicle on 108,796 deliveries 1. A 25.5% gross margin 2 leaves unclear if profit comes from cars or AI and software, since reporting bundles hardware with services.
Memory costs are jumping as DRAM (dynamic random access memory) spiked over 50% week over week in parts of the channel 3, and automotive-grade parts get a 2–3x premium over consumer chips at $15–20 per gigabyte 4. Advanced driver assistance systems need 8–32 GB per vehicle, which strains margins 4.
China plans to cut EV purchase tax incentives by half next year, and Xiaomi’s automotive gross margin fell from Q2 to Q3 on higher core component costs 1. Profit durability looks shaky until the company breaks out hardware and software revenue.

Samsung paused DDR5 (Double Data Rate 5) contract pricing, which means no new long-term quotes 5, and suppliers shifted capacity to AI uses as TrendForce lifted Q4 2025 DRAM price growth to 18–23% 5.
Winbond, a Taiwan memory chipmaker with 27% share in SPI NOR Flash (Serial Peripheral Interface NOR flash used for reliable code storage) 6, sits in a good spot as larger rivals exit niches.
Investors should track growth in automotive memory from $13.7 billion in 2025 to $33.1 billion by 2030 4 and favor companies with automotive-qualified parts, extended temperature screening, and AEC-Q100 (Automotive Electronics Council Q100 reliability) certification.