Xiaomi's Bold Journey from Phones to the Fast Lane of Automotive

ArabGT

4 days ago

It's not every day a smartphone mogul shifts gears—literally—and finds success building cars. But that's exactly what Lei Jun, founder and CEO of Xiaomi, is doing. A decade ago, he was shattering records by selling millions of phones online in a single day. Today, he's making headlines in the automotive world for something much bolder: selling electric vehicles faster than most legacy carmakers could dream of.
In just three minutes last month, over 200,000 people snapped up Xiaomi's sleek new U7 electric sedan. That's the company's second EV, following the Su7 sports car launched just last year. And while other tech giants like Apple abandoned their car ambitions after years of R&D and billions in losses, Xiaomi is doing what many thought impossible—making it work.
300,000 EVs, 15 Months, and a Long Line of Buyers
It's hard to overstate what Xiaomi has pulled off in such a short time. Since announcing its EV push in 2021, the company has delivered more than 300,000 electric vehicles across China. Buyers are lining up—some for over a year—just to get behind the wheel. And although Xiaomi's car division isn't yet profitable, Lei Jun has gone on record predicting a turnaround before the year ends.
That kind of confidence isn't unfounded. China's manufacturing speed and scale are unmatched, making it easier to launch EVs quickly. But insiders say there's more to the story. Unlike many executives who delegate, Lei Jun rolled up his sleeves and led the EV program himself. It's that personal commitment, they argue, that made the difference.
No More Outsourcing—Xiaomi Is Now Building Its Own World
Before venturing into EVs, Xiaomi didn't build anything itself. Like Apple, it relied on outside factories. But cars changed the equation. Lei Jun decided to bring manufacturing in-house, opening a dedicated car factory in Beijing and laying the foundation for more.
That thinking is now reshaping other areas of the business. Xiaomi started building its own smartphones last year and is constructing a new factory in Wuhan to produce smart home gadgets, starting with air conditioners. The message is clear: Xiaomi wants full control—from design to delivery.
Tragedy, Resilience, and a Fanbase Like No Other
Every great brand has its moment of reckoning. For Xiaomi, that came in March, when a fatal accident involving a U7 under autonomous driving mode took the lives of three university students. It was a gut-wrenching moment, and the backlash was swift—at least at first.
But something surprising happened. The fans—called 'Mi Fans'—stayed. Despite the tragedy and a brief market dip, enthusiasm didn't wane. When the U7 officially launched just three months later, demand was as high as ever. Analysts say it's proof of Xiaomi's emotional connection with its audience—something that can't be engineered, only earned.
From Pocket Screens to Driveways
With over 700 million monthly active users globally and nearly half its profits coming from digital ads and mobile games, Xiaomi is uniquely positioned. Its users are loyal, familiar with the brand, and already shopping through its ecosystem. That makes cross-selling—like phones to cars—a natural progression.
And timing couldn't be better. Many of Xiaomi's earliest phone buyers are now in their thirties, reaching the stage of life where cars become a bigger priority. Lei Jun seems to know this—and is betting on it.
For now, Xiaomi sells just 20,000 cars a month, a fraction of what EV leader BYD moves. But make no mistake—Lei Jun isn't chasing quick wins. He's playing the long game, with marketing muscle, tech credibility, and a fanbase that keeps showing up. And that may be all he needs to quietly change the rules—again.