Xiaomi unit secures $88m site in Beijing for EV expansion

Xiaomi Jingxi Technology, a subsidiary of Xiaomi, has won a tender for a 50-year lease on a 485,134-square-meter plot of land in Beijing for 635 million yuan (US$88 million).

The Beijing municipal planning and natural resources commission announced the deal on June 19, 2025.

The land is located near the second phase of Xiaomi’s electric vehicle (EV) factory.

It will be used for a smart connected car and components project.

This recent tender win allows Xiaomi to join a select group of automakers in China authorized to expand manufacturing capacity.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ Xiaomi applies its proven “scale after validation” playbook to electric vehicles

Xiaomi’s land purchase for EV expansion demonstrates a strategic pattern the company has consistently applied across product categories.

In 2016-2017, Xiaomi successfully recovered from a smartphone sales collapse (dropping from 70 million to 41 million units) by first identifying organizational problems, restructuring, and then scaling only after market validation1.

This methodical approach is evident in their EV strategy, where they’re expanding production capacity only after seeing strong market response to the SU7 sedan. By securing additional land near their existing factory, Xiaomi is leveraging manufacturing proximity for operational efficiency while applying their proven pattern of scaling after market validation.

The company has increased its 2024 EV delivery target from 300,000 to 350,000 vehicles based on concrete demand signals, with customers currently facing waiting periods of up to 51 weeks.

2️⃣ Contrarian expansion in a crowded market mirrors past success

Xiaomi’s decision to expand EV capacity while “the majority of the sector is grappling with overcapacity” demonstrates the same contrarian approach that fueled their smartphone comeback.

When smartphone competitors were pursuing similar strategies in 2016, Xiaomi diverged by restructuring their retail approach, building offline stores that generated remarkable efficiency – occupying just 0.15% of mall space while generating 7% of total sales1.

This willingness to move against market trends has become a hallmark of Lei Jun’s leadership strategy, as seen in both their smartphone revival and current EV expansion.