Xiaomi EV is assembling a team for selling cars overseas and will sell small batches of cars in several regions in recent years to test market response, according to local media.

Xiaomi EV, the car-making unit of Xiaomi (HKG: 1810, OTCMKTS: XIACY), has reportedly put selling cars overseas on its agenda, as competition at home gets fiercer.

Xiaomi EV is making preparations to launch businesses in overseas markets, and it will start car sales operations in several regions, local media outlet 36kr said in a report yesterday.

Xiaomi Group has added an overseas sales business preparation group under its international business and is hiring for positions including market research, project management, and EV after-sales engineers, the report said.

Xiaomi EV's smart driving division has added several new positions for overseas markets to address the compliance process for smart driving features overseas and to prepare for the rollout of the features, according to the report.

After the team is assembled, Xiaomi EV will conduct small-volume car sales in several overseas regions in recent years to test market response and prepare for a large-scale rollout of its overseas operations, the report said.

Xiaomi EV's overseas sales will mainly rely on stores under Xiaomi's international division. Currently, Xiaomi has over 100 directly-managed stores overseas, the report noted.

Xiaomi's first model, the SU7 electric sedan, was officially launched in China on March 28, with a starting price of 215,900 yuan ($29,700).

Xiaomi said on November 18 that SU7 deliveries had exceeded the 100,000-unit target for this year and announced a new 2024 target of 130,000 units.

On December 9, Xiaomi announced its second EV model was named YU7 and the SUV (sport utility vehicle) model's launch is expected in June or July next year.

Prior to the official launch of the SU7, Xiaomi showcased the sedan at the Mobile World Congress in Barcelona in February, marking its first appearance on the international stage.

In July, Xiaomi shipped two SU7s to France for a special display in Paris, when the smartphone maker's founder, chairman, and CEO Lei Jun said the goal is to sell Xiaomi-branded cars in Europe before 2030.

Judging by the speed at which Xiaomi EV's overseas business team is being assembled, it's likely that this progress will be accelerated, 36kr's report said.

Compared to other Chinese car companies, Xiaomi is more familiar with overseas markets and has more experience in overseas operations, which will help Xiaomi EV get a quick breakthrough in the local markets, the report noted.

But obstacles remain, with one of Xiaomi's core challenges being its lack of recognition in the high-end market, the report said.

($1 = RMB 7.2700)

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