Xiaomi loses over $5,600 on every car sold (1 photo)

Xiaomi Group has released the first quarter 2026 business results for its electric vehicle division. Despite an increase in shipments—80,856 vehicles compared to 75,869 a year earlier (+6.6%) and impressive revenue of 19 billion yuan (~$2.8 billion)—losses increased significantly.



Based on the financial losses in Q1 2025, Xiaomi lost an average of approximately $900 per electric vehicle sold. However, for the same period in 2026, the operating loss reached 3.1 billion yuan (~$457 million), or more than $5,600 per vehicle. And that's no small amount of money, considering Xiaomi's overall quarterly net profit was 4.73 billion yuan (~697 million USD).

Xiaomi attributes the financial losses to reduced subsidies for electric vehicle purchases in China, a reduced share of shipments of the higher-margin SU7 Ultra model, and rising costs for key components. Meanwhile, the ongoing dumping wars in China have prevented manufacturers from raising prices for their products—the average price of high-tech Xiaomi devices is currently only 235,000 yuan (~34,600 USD).