Xiaomi Q1 earnings and pivot towards the EV sector

CGTN Europe

Xing Lei, Founder of AutoXing and the Former Chief Editor of ChinaAutoReview speaks to CGTN Europe about company's ambition to conquer the global EV market.

Transcript

00:00 Currently, the EV business of Xiaomi is still relatively small.

00:06 If we look at the revenue potential from those 120,000 sales, let's just take 100,000,

00:16 which is their official target for this year. It's about 25 billion MNB, which is going to be

00:25 slightly less than 10% of their total revenues expected for this year. So it's still small.

00:32 But the other number I wanted to point out was Leijuan is earmarking $10 billion

00:39 over the 10 years on the EV business. So you have kind of an idea of how big it would be.

00:49 And what should we make of the company's pivot, the timing of the company's pivot to EVs?

00:55 It's definitely coming at an interesting point in time, given the current price war and the

01:04 geopolitical sentiment around the world on EVs. But I think Xiaomi has definitely injected

01:13 vitality into the current environment, given that in less than one year,

01:20 they're going to be trying to sell 120,000 units. That's unprecedented.

01:25 And when it comes to the global beauty contest of the EV market,

01:31 where does Xiaomi find itself, do you think?

01:34 Well, it's definitely one of the new kids on the block, but the ambitions is huge. I mean,

01:41 the expectations, what they're trying to achieve has exceeded every expectation possible. My own

01:50 expectations was 40,000 to 70,000 units for this year would be a success. But it looks like they're

01:58 going to double that based on what you just mentioned, 120,000 units.

02:05 Many commentators used to say that Tesla was seen as all conquering. Some say it's now

02:11 misfiring somewhat. So what is your outlook for Xiaomi's plan to conquer the EV world?

02:18 Well, I guess now if we look at the landscape in China, at least BYD is number one,

02:27 Tesla is number two, and there's yet a clear number three emerging in terms of the scale

02:35 and the sales comparable to BYD or Tesla. But it looks like Xiaomi, given their current momentum,

02:44 120,000 this year, given their later products, the SUV coming, I wouldn't be surprised

02:55 if that number doubles in 2025, the 120,000 units. So they could very well quickly emerge

03:04 as the number three player in China.

03:08 Shinglei, good to see you. Thanks so much for coming on the program. All the best.

03:11 Thank you for having me.

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