Xiaomi CEO Lei Jun has announced that the company may launch its electric vehicles internationally by 2027. This information was shared during a recent live-stream event focused on the company’s priorities and future plans.

Lei noted that Xiaomi is currently working to resolve domestic delivery challenges. There are significant backlogs in fulfilling customer orders in China. He emphasized that addressing these issues will be the company’s main focus for the next two years before considering foreign markets.

Xiaomi first revealed its intention to enter the EV sector in 2021. The company plans to invest around US$10 billion in the industry over the next decade. This decision aligns with a wider trend among Chinese EV companies, such as Nio and Xpeng, which are already established in the market. Huawei is also progressing through partnerships and technology development.

🔗 Source: Huxiu

🧠 Food for thought

1️⃣ Repeating proven domestic-first strategy from smartphones to EVs

Lei Jun’s cautious approach to international expansion follows Xiaomi’s successful smartphone playbook from a decade ago.

When Xiaomi entered the smartphone market in 2011, it focused exclusively on China for three years before expanding internationally to Singapore and Southeast Asia in 2014 1.

This strategy helped Xiaomi become China’s fifth-largest smartphone brand by 2013, selling 18.7 million units domestically before attempting global expansion 1.

The company is now applying this same pattern to its EV business, focusing on establishing strong domestic demand first, as evidenced by the 240,000+ pre-orders for its YU7 electric SUV 2.

This disciplined approach contrasts with some Chinese EV makers who expanded internationally before achieving domestic stability, allowing Xiaomi to refine its product and manufacturing processes before taking on complex international markets.

2️⃣ Production capacity challenges remain Xiaomi’s consistent growing pain

Xiaomi’s current EV delivery bottlenecks mirror its historical struggles with production capacity during periods of rapid growth.

In 2016, Xiaomi experienced a significant smartphone sales decline from 70 million to 41 million units, with supply chain issues identified as a key contributing factor 3.

Now, despite having anticipated strong demand for its EVs, the company faces delivery delays of up to 60 weeks for its YU7 model because its production capacity is already maxed out 2.

The company’s plans for a third factory phase demonstrate they’re addressing these challenges, but the pattern suggests Xiaomi consistently underestimates the production requirements for its successful products 2.

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