In October, the Xiaomi SU7 set a new record with over 20.000 deliveries for the month. Since its launch in March and the start of official deliveries in April, nearly 90.000 SU7 units have been delivered to date.
If Xiaomi maintains October’s delivery scale, with another 20.000 in November and December, the company’s 2024 SU7 deliveries could exceed 120.000. potentially even reaching 130.000 units. According to media reports, Xiaomi aims for a monthly production target of 24.000 units in November and December, making 130.000 deliveries for the year very feasible.
For a company that only started delivering vehicles within the past year, these achievements are unprecedented and difficult for other new automakers to match. When you look at the current order situation for Xiaomi's vehicles on the app, the shortest estimated wait time for the Max model is 21-24 weeks, or around five months. This suggests Xiaomi has around 100.000 outstanding orders—a staggering figure if it continues to deliver 20.000 cars per month.
In fact, Lei Jun admitted before Xiaomi’s vehicle launch that he had two big worries: that no one would buy the car or that demand would be so high production couldn’t keep up—leading to criticism. Now, it seems his concerns were valid, as overwhelming demand has proven more challenging than low demand. While other carmakers struggle with debt due to low sales, Xiaomi faces the challenge of high demand, with production lagging behind orders.
For most other automakers, the issue lies in unsold cars, with production capacity available but low demand leading to high per-unit costs, significant losses, and ultimately cash flow issues that force closures. In contrast, Xiaomi’s main challenge is boosting production to meet demand, even if it means enduring criticism for delays. Financial losses are not a major worry for Xiaomi, as the company has ample cash flow and can rely on other businesses, such as its smartphone division, to support the automotive division financially.
As long as car sales continue to grow, Xiaomi’s current losses are likely to turn profitable in the future. Based on Q2 data, Xiaomi incurs a loss of 66.000 yuan per vehicle. However, the SU7 has a gross profit margin of 15.4%, and with stable margins and cost ratios, once quarterly sales of the SU7 surpass 83.000 units, Xiaomi Auto will start turning a profit.
This means that if Xiaomi reaches 28.000 deliveries per month, the company could break even on its automotive operations. This goal seems likely to be achieved soon, especially as Xiaomi plans to launch an SUV next year. Xiaomi Auto’s rapid growth may exceed everyone’s expectations, putting real pressure on competitors. Here is a new car company likely to reach profitability within just a year, while veteran automakers who have been producing vehicles for nearly a decade are still incurring losses.
