If you know Xiaomi, you probably think of smartphones, gadgets, and smart home devices. For years, the company built its reputation as one of the biggest names in consumer technology. It became popular for offering feature-packed products at affordable prices, a strategy that helped it win millions of customers not just in China but around the world.
But in 2024, Xiaomi surprised everyone when it entered a completely new business—automobiles. The company introduced its very first electric car, the SU7 sedan, and made it clear that it wanted to become more than just a phone brand.
Many people thought this was a risky move. After all, the car industry, especially in China, was already packed with tough competitors like BYD, Tesla, Nio, and many more. Few expected Xiaomi to make a dent in this crowded space. And yet, Xiaomi proved everyone wrong.
The Success of the SU7
The SU7 didn’t just find customers—it became a sensation. Buyers loved its sleek design, modern features, and competitive price. Within months, it climbed to the top of the sales charts in China, even overtaking the Tesla Model 3, a milestone that Xiaomi had openly set as its benchmark goal.
This achievement shocked industry watchers. How could a company best known for smartphones suddenly rival Tesla, one of the world’s most famous electric car brands? The answer was simple: Xiaomi used the same formula that made its phones popular. It combined style, performance, and advanced technology while keeping the price lower than expected. The result was a car that Chinese customers lined up to buy.
The SU7’s success instantly placed Xiaomi among China’s most popular car brands, proving that the company wasn’t just playing games—it was serious about the future of electric vehicles.
The Arrival of the YU7
Riding on the success of the SU7, Xiaomi didn’t waste time. Its second model, the YU7 crossover, hit the market in mid-2025, and demand was even stronger. Customers wanted it so badly that waiting times stretched beyond a year for certain versions.
Xiaomi tried to expand production capacity, but the demand outpaced supply. Even so, this wasn’t seen as a failure. On the contrary, having long waiting lists showed just how desirable Xiaomi’s cars had become in such a short period of time.
With the SU7 and YU7, Xiaomi had managed to build something rare—trust in its brand as an automaker. For buyers, the name Xiaomi was no longer just about phones. It now meant electric cars that could compete head-to-head with established players.
Big Global Ambitions
Success at home was just the beginning. From the start, Xiaomi made no secret of its goal to become one of the world’s top carmakers. It wasn’t planning to limit itself to China. The company’s next target was clear: Europe.
In early 2025, Xiaomi President Lu Weibing revealed in interviews that the company was studying how other Chinese carmakers were performing in Europe. He hinted strongly that Xiaomi’s cars would eventually make their way to the European Union.
Not long after, he posted a photo online of an SU7 Ultra registered with German license plates. This was Xiaomi’s first experimental vehicle in Europe, and it sparked speculation about the company’s expansion timeline.
Soon after, during the company’s earnings call, Lu confirmed that Xiaomi plans to officially launch its cars in Europe in 2027. That will make Europe the company’s very first overseas market for electric vehicles.
Why Europe First
Some people wondered why Xiaomi would go to Europe before considering markets like the United States. The answer lies in strategy. Europe is currently one of the fastest-growing EV markets in the world, supported by strong environmental policies and generous incentives for electric cars. Consumers there are more open to trying new EV brands, especially if they combine good design with competitive pricing.
For Xiaomi, this makes Europe the perfect place to test its strength outside of China. The company already has a strong tech presence in Europe through its phones and gadgets. That familiarity gives it an advantage over completely unknown Chinese automakers. When Xiaomi eventually launches its cars in Europe, it won’t be starting from zero—it will already have millions of loyal customers who know and trust the brand.
The Bottleneck Challenge
But Xiaomi’s journey isn’t without challenges. Right now, its biggest problem isn’t finding customers—it’s making enough cars to meet demand. The waiting time for the SU7 has stretched to around 41 weeks, while for the YU7, it’s even longer—up to 58 weeks.
These delays are frustrating for customers and could slow down Xiaomi’s momentum if not fixed. CEO Lei Jun has admitted that China will remain the company’s priority for now, but he’s also optimistic that production bottlenecks will ease by the time Xiaomi enters Europe in 2027.
Factories and Tariffs
Another big question is how Xiaomi will produce cars for Europe. Building a new factory from scratch takes time, and while it’s faster in China, in Europe it can be a long and complicated process. There’s also the risk of tariffs. The European Union has been debating whether to impose higher taxes on Chinese electric cars to protect local automakers.
If tariffs are introduced, Xiaomi could face higher costs that make its cars less competitive. One possible solution would be for Xiaomi to build or buy a factory in Europe. Interestingly, several European car plants are currently underused or even at risk of closure. Xiaomi could take advantage of this situation and buy an existing factory at a lower price, turning it into its European base of operations.
A Familiar Strategy
If you look back at Xiaomi’s history, this whole strategy makes sense. The company has always been about bold moves. When it first launched smartphones, few thought it could challenge giants like Apple or Samsung. But Xiaomi won customers by delivering high-quality products at affordable prices, all while moving faster than its rivals.
Now it’s trying to repeat the same playbook in the car industry. First, win in the home market by proving its products are reliable and attractive. Then, expand abroad carefully, choosing the markets that give it the best chance to succeed. Europe is that market, and Xiaomi clearly believes it can win there too.
The Road Ahead
The road won’t be easy. Xiaomi will have to solve its production challenges, navigate European regulations, and possibly deal with political and trade issues. But if the company’s history tells us anything, it’s that Xiaomi has a talent for surprising its critics.
The SU7 was once considered a long shot, yet it became a massive success. The YU7 is already one of the most in-demand crossovers in China. By 2027, if Xiaomi can build enough cars and keep its prices competitive, it could make just as big an impact in Europe as it did at home.
The expansion will also send a message to the world: that Xiaomi is no longer just a tech company, but a true global automaker.
A Future with Xiaomi Cars Everywhere
It’s exciting to think about what the future could look like. By the end of this decade, we might see Xiaomi cars driving through European cities, parked in front of homes, and competing with brands like Tesla, Volkswagen, and Renault. If successful, Europe could just be the first stop on a much larger journey that eventually takes Xiaomi cars to markets all over the globe.
From phones to cars, Xiaomi has proven it knows how to dream big and deliver results. The next few years will determine just how far that ambition can take it.
Source: Xiaomi
