Xiaomi reports USD1.3 billion in revenue from EV business in Q3 with 39,790 deliveries
Xiaomi reported revenue of RMB 9.5 billion (USD1.3 billion) from its electric vehicle (EV) business in the third quarter of 2024, up 52.1% from RMB 6.2 billion in the second quarter, according to the smartphone giant's financial report.
The company's EV business and other innovative businesses earned cumulative revenue of RMB 9.7 billion in the third quarter, up 52.3% from RMB 6.4 billion in the second quarter, contributing 10.5% of all revenue.
During the third quarter, Xiaomi delivered 39,790 units of its SU7 series EVs, bringing the cumulative deliveries of the model to 67,157 units from its launch on Mar 28 to the end of September.
The average selling price of the Xiaomi SU7 in the third quarter was RMB 238,650, up 4.4% from RMB 228,644 in the second quarter, according to the company.
This increase in average sales price was mainly due to the increased share of Xiaomi SU7 Pro and SU7 Max delivered in the quarter, it said.
The Xiaomi SU7 is offered in three variants -- Standard, Pro, and Max -- with starting prices of RMB 215,900, RMB 245,900, and RMB 299,900, respectively.
In the third quarter, Xiaomi's gross margin for its innovation business, which includes EVs, was 17.1%.
For comparison, Xpeng reported revenue of RMB 8.11 billion in the second quarter, with deliveries of 30,207 vehicles and a gross margin of 14.0%.
Nio reported second-quarter revenue of RMB 17.45 billion, with 57,373 vehicles delivered and a gross margin of 9.7%.
Xpeng will report its third-quarter results on Nov 19, before the US markets open, and Nio will report on Nov 20, before the US market opens.
Xiaomi reported an adjusted net profit of RMB 6.3 billion in the third quarter, up 4.4% year-on-year, and had an adjusted net loss of RMB 1.5 billion from its innovative businesses, including its EV business.
Xiaomi's auto business is still operating at a net loss, but not by much. The company's cars stand to lose the business around USD207 million for the year. Overall, that works out to just a hair under USD1,600 per unit, and at a 17.1% profit margin, it's only a matter of time until Xiaomi works out the kinks.
Chinese brokerage firm Huatai Securities estimates that Xiaomi will sell around 400,000 EVs in 2025. That number will effectively raise its EV business unit to account for around 20% of Xiaomi's revenue versus the 8% that it brought in so far for 2024.
The company's cost of sales in the third quarter for its innovative business was RMB 8 billion.
Xiaomi will challenge a new target of delivering 130,000 SU7 units for the full year in 2024, the company said, repeating what its founder, chairman, and CEO Lei Jun posted on Weibo.
As of Sep 30, Xiaomi had 127 car sales stores in 38 cities across the Chinese mainland.
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