Sales Of EVs Generate Xiaomi’s First Profit

China’s Xiaomi has achieved its first quarterly operating profit in its electric vehicle division: in the third quarter, this division generated 700 million yuan, which is about 85 million euros. At the same time, the Chinese group is increasing its sales forecast for the current year from 350,000 to 400,000 electric cars.

Xiaomi’s electric vehicle and AI business unit has reached profitability about 19 months after launching its first electric sedan, the SU7. The unit officially brings together “intelligent electric vehicles, AI and other new initiatives,” but electric cars alone generated revenue of 28.3 billion yuan in the third quarter, out of a total of 29.0 billion yuan. That’s 3.45 billion euros out of a total of 3.53 billion euros. That’s a 199 percent increase from the third quarter of 2024 and a 36 percent increase from the second quarter of 2025, Electrive reports.

Ultimately, the unit remained profitable between July and September. Xiaomi reports an EBIT of 700 million yuan for the division. This figure describes operating profit before interest and taxes (gross profit minus operating expenses).

According to the company, this success is primarily the result of increased vehicle deliveries but also an increase in the average selling price. In the third quarter, Xiaomi increased sales from 81,302 units in the second quarter of 2025 to 108,796 units (+33.8 percent).

Compared to the previous year, sales increased by 173.4 percent (Q3/2024: 39,790 units). The average selling price increased by nine percent compared to the same period last year—from 238,650 yuan per vehicle to 260,053 yuan (approximately 29,080 to 31,690 euros)—which is mainly attributed to increased deliveries of the YU7 series, which has a higher average selling price.

“In October 2025, the Xiaomi YU7 series ranked first in terms of SUV sales in mainland China,” Xiaomi noted in its annual report. This was also possible thanks to a denser network of sales and service centers, which, as of September 30, included 402 sales centers in 119 cities and 209 service centers in 125 cities in mainland China.

During a conference call with analysts to announce its financial results, Xiaomi CEO Lei Jun also updated its annual sales target. He said the company will hit its original target of 350,000 electric cars shipped in 2025 this week and now expects to ship more than 400,000 vehicles this year. Adding in the electric cars produced in 2024, Xiaomi has produced around 500,000 vehicles so far.

• Also See: Xiaomi Fixes Bug In Over 100,000 EVs After Fatal Crash