Xiaomi has reached a major milestone in its journey as an electric vehicle manufacturer. The company announced that its EV division recorded its first operating profit in the third quarter. This marks a strong turning point for the brand which entered the automotive market only a short time ago. Rapid demand for its vehicles higher sales volumes and improved production efficiency have played a central role in this achievement.
This shift comes at a time when global electric vehicle competition is rising and only a handful of new entrants manage to reach profitability so early. Xiaomi’s performance shows strong market acceptance and confidence in its EV lineup.
During the third quarter Xiaomi’s EV and AI business unit reported significant revenue growth. The EV division alone generated a large share of this amount showing how quickly it has become a key part of the company’s overall business.
A major factor behind this success is the rise in vehicle deliveries. Xiaomi delivered more than one hundred thousand electric vehicles in the third quarter which is a noticeable jump compared to the previous quarter and the same period last year.
Another important point is that the average selling price of Xiaomi cars increased. This happened because more customers purchased premium models particularly the YU7 series which helped lift overall earnings.
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Xiaomi’s profitability is also the result of better manufacturing processes. Production costs have dropped due to improved supply chain management and more efficient use of components.
The company’s gross profit margin for the EV division has increased sharply compared to last year. This shows that Xiaomi is not only selling more cars but is also earning more from each unit sold.