Xiaomi has opened a research and development (R&D) center in Munich, Germany, focusing on high-performance vehicle development. The facility employs fewer than 50 senior engineers and experts and is not planning immediate expansion.

The Munich team is reportedly working on performance tuning for Xiaomi’s SU7 Ultra Nürburgring edition and broader vehicle development for the company’s future lineup.

The center is led by former BMW executive Rudolf Dittrich and includes industry veterans such as Ricard Aiguabella Macau, a former Ferrari F1 aerodynamicist.

Xiaomi confirmed the establishment of the European R&D hub but stated that it has not yet set up a sales network in the region. However, reports indicate that a sales team has been formed in Düsseldorf, with plans to introduce vehicles in Spain, Germany, and France when market conditions improve.

Founder Lei Jun has expressed ambitions to sell cars in Europe by 2030, though challenges such as high pricing due to taxes and logistics, may complicate its entry into the competitive European market.

🔗 Source: 36Kr

🧠 Food for thought

1️⃣ Xiaomi follows tech giant playbook with premium-first automotive entry

Xiaomi’s focus on performance vehicles follows a pattern among Chinese tech giants entering the automotive sector with premium offerings rather than mass-market vehicles.

The SU7 Ultra’s positioning against Porsche illustrates this premium-first approach, with performance claims that include acceleration from 0-100 km/h in just 1.98 seconds, faster than the Porsche Taycan 1.

This strategy has already shown early success, with Xiaomi reporting 22,897 SU7 models sold in January 2025, surpassing Tesla’s Model 3 sales in China during the same period 2.

By establishing its performance credentials first, Xiaomi creates a halo effect for subsequent models, a strategy that explains their development of a “track pack” and Nürburgring edition before launching more accessible vehicles.

The company’s significant investment of over 10 billion yuan ($1.4 billion) in EV development demonstrates their commitment to creating a premium product rather than a budget alternative 3.

2️⃣ European talent acquisition reveals Xiaomi’s serious global ambitions

Xiaomi’s strategic hiring of veteran European automotive talent signals a methodical approach to building credibility in the high-performance vehicle market.

The recruitment of five senior experts from BMW and the appointment of former BMW executive Rudolf Dittrich to lead the European R&D center demonstrates a targeted acquisition of specific German automotive expertise 4.

Recent Xiaomi developments