Xiaomi’s EV Ambitions Face Regulatory Hurdles Amid Market Skepticism
Xiaomi's electric vehicle division has set ambitious targets, aiming for 550,000 deliveries in 2026 after surpassing its 2025 goals. The EV unit achieved profitability within 18 months of launching its first sedan—a faster timeline than Tesla. Yet, investor confidence remains shaky as Xiaomi's stock underperformed amid broader concerns about EV overcapacity and softening demand.
Regulatory scrutiny intensified following two high-profile SU7 crashes, prompting China to draft new safety rules for driver-assistance systems and battery design. The incidents highlight growing pains for Xiaomi's automotive push, even as international observers praise its technology. "The SU7 Ultra is a warning sign for Western automakers," said former Volkswagen China chief Karl-Thomas Neumann.
