Xiaomi ups EV goal to 120,000 as Q1 tops forecasts on strong phone sales

xiaomi ups ev goal to 120,000 as q1 tops forecasts on strong phone sales

A person records as Xiaomi introduces new products ahead of the 2023 Mobile World Congress in Barcelona, Spain February 26, 2023. REUTERS/Nacho Doce/File Photo

By Liam Mo and Casey Hall

BEIJING (Reuters) -China's Xiaomi said it will aim to deliver 120,000 electric vehicles (EVs) this year, up from the initial goal of 100,000, and will implement double-shift production to meet rising demand for its EVs.

Xiaomi made this announcement during an earnings call after the company reported a stronger-than-expected 27% year-over-year increase in first-quarter revenue on Thursday, driven by robust smartphone sales amid a recovery in the market.

Xiaomi started delivering its SU7 EV to customers in early April, fulfilling CEO Lei Jun's dream and culminating years of effort to enter the EV business as part of the company's strategy to diversify away from smartphones.

Xiaomi's President Lu Weibing said on the call that double-shift production will start from next month to ensure monthly deliveries exceed 10,000 units. Lu said that demand for the SU7 has been strong, with cumulative locked-in orders reaching 88,063 vehicles as of the end of last month.

For the first three months of this year, Xiaomi's revenue was 75.5 billion yuan ($10.42 billion), compared with the 73.3 billion yuan estimated by analysts according to LSEG.

Adjusted net income was 6.49 billion yuan, beating the 4.94 billion yuan estimated by analysts.

The global smartphone market has shown signs of a recovery since late last year after a prolonged period of sluggishness.

Xiaomi's global smartphone shipments rose 33% to 40.7 million units in the first quarter, helping the company capture a 14% market share and placing it in the No. 3 position, according to industry research firm Canalys.

In China, Xiaomi's largest market for its smartphone business, shipments rose 8.6%, according to research firm Counterpoint.

Lu said that the company will start reporting automotive revenue separately, beginning in the current quarter.

Analysts from brokerage firm SPDB International wrote in a note that Xiaomi's auto-related revenue is expected to reach 23.7 billion yuan in 2024 and more than double to 50.8 billion yuan in 2025.

Xiaomi's shares have rallied over the past two months as investors cheered its EV progress. Its current share price is about 30% higher than the level in late March when the company announced the pricing of its SUV7 series.

The company's SU7 currently has four models, with prices ranging from 215,900 to 299,900 yuan. As of May 15, Xiaomi has delivered 10,000 EVs.

($1 = 7.2437 Chinese yuan)

(Reporting by Liam Mo and Casey Hall; Editing by Subhranshu Sahu and Chizu Nomiyama)

OTHER NEWS

17 minutes ago

Australians ‘choosing between heating and eating’ this winter

17 minutes ago

Mortgage portability: A solution to the housing market's 'lock-in effect'?

17 minutes ago

‘Doors open to everybody else’ if Senator Payman ‘allowed to slip through’

17 minutes ago

‘Creation is Not a Democracy’: Why Panerai’s Design Philosophy is Staunchly Unapologetic

17 minutes ago

'Winning again feels special' says Hatton after seizing maiden LIV Golf title in Nashville

17 minutes ago

Luka Modric speaks out on retirement as Croatia near Euro 2024 exit

17 minutes ago

Mums tackling childcare waiting list stress gather their own data to put solutions on the table

17 minutes ago

Volkswagen And Rivian Are Teaming Up On Software In $5 Billion Deal

17 minutes ago

Furyk and Weir set to square off in biennial 2024 President’s Cup in Canada

17 minutes ago

Judge Cannon is skeptical that evidence from Mar-a-Lago should be thrown out

18 minutes ago

Arkansas AG sues Temu over alleged ‘deceptive tactics’ harming consumers: 'Data theft business'

19 minutes ago

Game 7 Of Stanley Cup Final Posts Historic TV Numbers As Florida Panthers Edge Connor McDavid’s Oilers For First NHL Title

19 minutes ago

WikiLeaks founder Julian Assange pleads guilty

20 minutes ago

Video: Gary Neville slams 'BASIC' England and admits bore draw with Slovenia was a 'struggle to watch' - as he names the one player 'certain' to start in the last-16

20 minutes ago

Freeland says Canada is looking at surtax on Chinese EVs

20 minutes ago

Julian Assange: The enigmatic WikiLeaks founder who divides opinion

20 minutes ago

Vikings Links: Could the Vikings sit JJ McCarthy for more than one season?

20 minutes ago

Chris Bowen lashes Coalition’s ‘half-baked yellow cake’ nuclear plan

20 minutes ago

Labor’s renewable plan ‘so well behind schedule’: Sussan Ley

20 minutes ago

Chiefs News: Kansas City to Partner With Hallmark on Original Romance Movie

20 minutes ago

'I Want To Be Ready!' Jets' McDonald Preparing for Breakout

20 minutes ago

All Blacks head coach Scott Robertson explains controversial selection calls

20 minutes ago

Does Commanders 'Aggressive' Offseason Mean They Rank With Texans?

20 minutes ago

Dr Doireann O'Leary on the triggers that cause acne in women way past their teens

20 minutes ago

Jets' Tyron Smith To Have Plenty of Vet Days

20 minutes ago

The New VW Golf R Wagon Is All the Car You Need but Can't Have

20 minutes ago

What to expect from Deion Sanders' Colorado this season

22 minutes ago

21 million Miniverse toy sets recalled after reports of burns and respiratory irritation

26 minutes ago

Pentagon chief speaks with Russian defense minister

26 minutes ago

Boots shoppers praise £5 moisturiser that's recommended by dermatologists and 'saves' skin

26 minutes ago

An offseason checklist for the Edmonton Oilers

27 minutes ago

Julian Assange’s eye-watering bill to fly free

27 minutes ago

Deschamps admits ‘we deserve to be second’ but expects France to click

27 minutes ago

‘Wholly unsuitable’ outdoor dining area removed following shock closure of Wexford pub

27 minutes ago

How do you spot an innovation stock?

27 minutes ago

Maguire lauds Latrell impact on Blues' Origin focus

27 minutes ago

Championship revenue exceeds wages - Deloitte report

27 minutes ago

Heartache for Dutch golfers denied Olympics by their own country: 'We don't think you're worthy'

27 minutes ago

MCG specialist addresses Maroons

27 minutes ago

4,000 missiles, 72-hour outages: Northern Israeli mayor warns of 'blackout scenario'