The cost of developing, manufacturing, and selling electric vehicles is high. Chinese tech giant Xiaomi knows this well, having lost millions of dollars on the launch of its SU7 electric sports sedan. However, if you calculate the loss per car sold, Xiaomi is doing better than many larger brands.
The Xiaomi SU7 on display at the Mobile World Congress 2024 (MWC) global mobile exhibition in Barcelona, Spain (Photo: CNBC).
Xiaomi's auto division reported a loss of $252 million in the second quarter of this year, its first full quarter of car sales.
In the second quarter, Xiaomi delivered 27,307 electric vehicles to customers in China and believes it can reach 100,000 vehicles sold by November. If you count the total loss on the vehicles delivered to customers, Xiaomi is losing $9,200 on each electric vehicle sold.
While Xiaomi’s auto division has yet to turn a profit, such losses are not surprising. In early August, Rivian reported a loss of $1.46 billion in the second quarter, having produced just 9,162 vehicles and lost $32,705 on each vehicle sold.
Ford lost even more. In the second quarter, its electric vehicle division lost $1.1 billion on 23,957 vehicles sold, a loss of about $47,600 per vehicle sold.
Citibank analysts believe Xiaomi's auto division will break even when it reaches sales of 300,000-400,000 vehicles per year.
Xiaomi currently has no plans to sell the SU7, or any future models, outside of China. CEO Lei Jun told CNBC in April that Xiaomi would focus solely on the Chinese market for at least the next three years before considering expanding overseas.
The second model will help Xiaomi quickly break even and become profitable. It is said to be an SUV, slightly larger than the SU7, expected to be launched later this year and delivered to customers early next year. With demand for SUVs and crossovers still high, an SUV could generate more sales than the SU7 sedan.
Source: https://dantri.com.vn/o-to-xe-may/xiaomi-lo-9200-usd-tren-moi-chiec-xe-dien-ban-ra-van-kha-hon-ford-20240823230838909.htm
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