With Each Car Made, Xiaomi Loses A Significant Amount Of Money

Xiaomi Group has announced financial results for the first quarter of 2026. The company’s smart electric vehicles (EVs) and artificial intelligence innovation segment generated revenue of 19.9 billion yuan (US$2.9 billion) and an operating loss of 3.1 billion yuan (US$457 million).

A total of 80,856 vehicles were sold in the first quarter, which means that $5,600 was lost per car sold. In the first quarter of last year, $900 was lost per vehicle sold.

During the first quarter, Xiaomi delivered 80,856 new vehicles, an increase of 6.6% compared to 75,869 units delivered in the same period in 2025. The success is mainly attributed to the strong market contribution of the new YU7 series.

As of May 6, the new generation SU7, which was launched in March, has secured more than 80,000 orders. Meanwhile, the YU7 series has reached a cumulative vehicle delivery number of 232,000 units within 10 months of its market debut.

While revenue grew, the automotive segment faced profitability challenges in the latest quarter. Gross margin for the smart electric vehicles and AI innovation segment was 20.1%, down from 23.2% in the same period last year. The company attributed the decline to the elimination of vehicle purchase subsidies, lower shipments of the higher-margin SU7 Ultra model and rising costs of key components. As a result, the segment reported an operating loss of 3.1 billion yuan ($457 million), Car News China reported.

• Read More: Ford And Xiaomi In An EV Partnership???