Xiaomi Investor Conference Leaks: Hardware Net Profit Margin at 5% Target, YU7 at ¥235,900 Unlikely, Automotive Chip Details Disclosed

In a highly anticipated investor update, Xiaomi’s founder Lei Jun unveiled key strategic insights, promising a transformative approach to the burgeoning electric vehicle market. Sources close to the matter report that the company’s upcoming car model, YU7, is not likely to be priced at the initially speculated figure of 235,900 yuan. Actual pricing will be finalized in the coming days.

Of particular interest to investors, Lei Jun expressed a bold prediction: Xiaomi’s automotive division could achieve profitability as early as Q3 or Q4 of this year. Driving towards this goal, YU7 is slated to debut a cutting-edge 10 million Clips end-to-end (e2e) model, showcasing Xiaomi’s commitment to technological innovation. The company is significantly investing in autonomous driving (AD) development, with a robust research and development budget of 3.5 billion yuan, positioning it as a leader in the field.

Sources suggest that Xiaomi is also making significant progress in chip design. The company believes that having its own chip technology will greatly enhance the competitiveness of all its smart devices, including its EV offerings.

Beyond its advancements in the automotive sector, the company’s five-year investment in robotics is also beginning to bear fruit, with robots already undergoing trials in the company’s car factories.

Perhaps most notably, Lei Jun reiterated the company’s commitment to maintaining a profit margin of just 5% on its hardware. This aggressive strategy signals Xiaomi’s intention to disrupt the market. Its entry into electric vehicles, coupled with its pursuit of in-house chip development and robotics, is poised to reshape the competitive landscape.