Given the fragile economic reality in the world today, putting anything up for sale already means taking a risk, but if you also enter the car market, the risk triples. Xiaomi has done just that and boy has this move paid off well.

Xiaomi SU7 has become the biggest and riskiest investment for Lei Jun’s company, which will be able to continue selling its huge product portfolio without worrying about entering sectors such as the automotive industry. However, Jun is a manager with a great market visionand this very risky bet has given Xiaomi a big boost in the current financial year.

Lei Jun’s vision

Since the official presentation of Xiaomi SU7 in March, in just five months, Xiaomi Motors has opened/equipped 30 delivery centers, 102 sales stores, and 58 service stores; There are currently nearly 200 physical Xiaomi Motors locations in China aloneAnd this has been achieved with a single car, the SU7, which has an SUV sibling currently in development.

by estimation Deliver 120,000 units before December 31, A disgrace for the first year of a car’s life and also limited to a single region like China, Xiaomi has entered the electric vehicle market with such force and success that it has even been chosen by TIME magazine for a single region like China, with special campaigns for the most successful companies of the year.

And far from dragging the company into negative figures, as some analysts thought, SU7, after the €10 billion investment announced in June 2021, did the opposite: In a complicated year, Xiaomi made extra profits thanks to its first EV.

Xiaomi achieves highest revenue growth since 2021

According to Bloomberg, Xiaomi Corp. posts highest revenue growth rate since 2021driven by the initial success of its first electric vehicles and the recovery in the global smartphone market, where it holds an enviable third position, very close to Samsung and Apple.

The world’s third largest smartphone supplier Shipped 28% more phones compared to the previous yearAccording to data from research firm IDC, the global market grew by 6.5%.

sales increased by 32% more than expectedIt reached 88.9 billion yuan (11,209 million euros), compared with analysts’ average estimate of 86.9 billion yuan. Net profit 5.1 billion yuan Compared to the planned 3.8 billion yuan (643 million euros)

In short, taking risks sometimes pays off, sometimes it doesn’t; at least it has benefited Xiaomi a lot since its first foray into the electric vehicle space. Jun himself noted that company It aims to be one of the top five automakers in 15 to 20 yearsAnd judging by these numbers, it seems very likely that they will achieve this.

via | Bloomberg

In Xiaomi World | Buy Xiaomi SU7 in Spain: price, waiting times and all the information so far