Xiaomi’s electric car losses rise sharply: nearly $5,600 for every car delivered
Xiaomi’s electric car business is growing fast, but it has not yet reached profit. In the first quarter of 2026, the operating loss in the company’s Smart EV, AI and other new initiatives segment reached 3.1 billion yuan.
Sales are rising, and so are the losses
Xiaomi delivered 80,856 electric cars during the quarter. That works out at a segment loss of roughly $5,600 for every vehicle delivered. A year earlier, the equivalent figure was about $900.
The number needs careful handling, though. Xiaomi does not report its car business separately. Instead, it combines electric vehicles, artificial intelligence and other new initiatives into one segment. So the $5,600 figure does not directly represent the loss on each car sold.
Expensive components and a model change weighed on results
According to the company, the result was affected by purchase incentives, rising prices for key components and a higher share of cheaper versions in the sales mix. The quarter also included the transition from the first generation SU7 to the updated model.
Demand does not appear to be Xiaomi’s main problem for now. Orders remain strong and the company is expanding its model range, but rapid growth requires heavy spending on production, marketing and development.
Growth still comes at a high price
Xiaomi’s electric car gross margin remained respectable by car industry standards, but it is not yet enough to cover all the costs of expansion. The company still needs to prove that it can turn strong sales volume into lasting profit.
The key question for the coming years is simple: can Xiaomi repeat in the car industry the scale effect it achieved with smartphones? The product looks competitive, but the car business is already proving a far more expensive experiment than it may first have seemed.
