They manufacture faster than anyone else, their car is a gold mine, but they still lose money for each sale

When Xiaomi announced that it was going to develop and manufacture a car, many thought they had gone crazy. For a technology company, in charge of manufacturing everything from mobile phones to kitchen robots, to embark on the automobile adventure was rare. Others had already tried it before, such as Apple or Google, but most abandoned the projects due to the enormous cost. However, the Chinese have not given up. Xiaomi has been working for years and its first electric car is already a success. The SU7 is one of the most interesting electric cars of the moment. Everything that is manufactured is sold, but Xiaomi still continues to lose money with each one of them.

It’s really no surprise. It takes a long time for brands to recover the enormous investment involved in developing a car from scratch. Large groups share technologies between their brands, speeding up returns and advancing benefits. Xiaomi does not belong to any large automobile conglomerate, nor has it partnered with any to create its first electric car. All work has been created, designed and manufactured by them. Which has a lot of merit considering current market conditions. It is true that Xiaomi is working on new models that will take advantage of the SU7 technology.

Xiaomi has achieved in less than a year what took Tesla more than a decade

We already know that the second of its vehicles will be an SUV and that it will be presented, almost certainly, at the end of this year. Thanks to this use of resources, Xiaomi will accelerate the return on investment with each completed registration. Despite this, the arrival of the SUV may not be necessary for the automobile division to start generating profits. The latest balance sheet presented ensures that Xiaomi continues to lose money with each SU7 unit registered, but the loss is significantly less than what we knew in August. Xiaomi is about to break all known records of economic precocity.

The data assure that the loss is 38,000 yuan per car, slightly less than 5,000 euros at the exchange rate.. In August that figure was 7,500 euros. The success has reduced deadlines and forced Xiaomi to recalculate sales expectations for this year. Of the 100,000 units planned now, it is estimated that 130,000 will be registered at the end of the course, 30% more. Many fear that Xiaomi will become one of the largest manufacturers in China when its own factory is launched. A large production plant that is already being built at a record pace. The project has not yet been executed and they are already organizing an expansion.

Xiaomi will soon start making money with its first electric car. It has been just 230 days since the first unit destined for customers left the assembly line. Never before had a car manufacturer manufactured so many units, 100,000, in such a short time. It took Tesla 12 years to reach that production volume. Li Auto and NIO, two large Chinese manufacturers, had to wait two and three years, respectively. Until now the record was in the hands of Aito. The Chinese manufacturer set a new milestone by taking 448 days to manufacture 100,000 units. Xiaomi has reached the same figure in almost half the time. It will be difficult to see success like this in the future, although coming from China anything is possible.