The move marks the first overseas foray for Xiaomi's cars, which have proved enormously popular in China and wowed Western auto executives.

That said, smartphone revenue and ASP slipped this quarter. Xiaomi follows up on its record-setting Q1 with a similarly strong Q2 result this year.

Premiumization strategy accelerates, fueling strong growth across smartphones, smart EVs, and smart home appliances Beijing, Hong Kong, August 19, 2025 —

Xiaomi delivered a strong performance in the second quarter of 2025, underscoring its rapid transformation into a more diversified technology company. Growth in its EV, AI, and new initiatives businesses helped the company offset continued weakness in its core smartphone segment.

A rise in shipments of smartphones, especially in Southeast Asia, helped to boost Xiaomi's second-quarter revenue by 30.5%, the smartphone and EV company said on Tuesday, against the backdrop of a sluggish global market.

Chinese tech giant Xiaomi is facing delivery delays for its second electric vehicle, the YU7, due to overwhelming demand since its June launch. In an unexpected move, Xiaomi CEO Lei Jun has made headlines by recommending competitor vehicles to its customers.

Xiaomi plans to enter Europe’s EV market by 2027 and compete with Tesla and BYD. The company expects its car division to become profitable by the end of this year. BMW and F1 veterans have joined Xiaomi to develop its new European R&D center.

The SU7 Ultra recently secured the title of fastest production electric vehicle (EV) to lap the Nurburgring Nordschleife. Yet, this electric marvel is not solely about raw speed—it also performs maneuvers that can captivate any automotive enthusiast.