Xiaomi reports first annual profit for EV business

Chinese electronics group Xiaomi has reached profitability with its electric vehicle business in under two years. Following the launch of its first model, the SU7, the company reports a first positive EBIT of more than €110 million for its EV division in the 2025 financial year.

As early as the third quarter of 2025, Xiaomi reported its first EBIT profit in its ‘Smart EV, AI and Other New Initiatives’ segment, which has so far consisted almost entirely of its electric vehicle business. At the time, the company recorded a quarterly profit of 700 million yuan (around 87.5 million euros). In the financial data for Q4 2025, which Xiaomi has now published alongside its annual results, the company reports a quarterly profit of 1.1 billion yuan (around 137.5 million euros) in this segment.

While Xiaomi’s EV division was still loss-making in the first two quarters, the segment closed the full year with a profit of 900 million yuan (around €112.5 million). The company reports this figure as EBIT (earnings before interest and taxes), meaning that all major cost items – including production, administration, sales and marketing, research and development, as well as depreciation – are already accounted for.

This makes the result notable, as other EV start-ups such as Lucid or Rivian have previously reported positive gross margins, indicating cost-covering production, while remaining cost blocks continued to weigh on overall profitability.

Including all other business areas, such as smartphones, Xiaomi reports a net profit of 41.6 billion yuan (5.2 billion euros)—with the electric vehicle division now contributing to this for the first time, albeit on a small scale. The Xiaomi Group’s total revenue reached 457.3 billion yuan (57.2 billion euros). Meanwhile, the electric vehicle division saw a significant increase of 223.8%, achieving revenue of 106.1 billion yuan (13.3 billion euros).

This electric vehicle revenue was primarily driven by a sharp rise in sales: Xiaomi delivered a total of 411,082 vehicles in 2025, representing a 200.4% increase compared to the previous year. The recently updated first model, the SU7, was reportedly the best-selling saloon in mainland China last year in the price segment starting at 200,000 yuan. The second model, the YU7, introduced in summer 2025, an electric SUV, held the top spot in sales for medium to large SUVs for seven consecutive months (until February 2026).

cnevpost.com, mi.com (PDF annual report)