Xiaomi Targets European EV Market with 2027 Showroom Launch

Xiaomi is actively laying the groundwork for its European electric vehicle (EV) debut in 2027, with preliminary plans including opening dedicated showrooms and exploring the feasibility of future local manufacturing. A senior executive at the Chinese tech giant shared these strategic insights with CNBC, signaling a significant move to challenge established automakers and fellow Chinese EV entrants in the burgeoning European market.

The Beijing-based company, fresh off a successful launch of its EVs in China, announced plans last month to extend its reach to Europe. This ambition positions Xiaomi alongside other Chinese EV manufacturers, such as Xpeng and Guangzhou Automobile Group, all vying for market share in a region increasingly focused on electric mobility.

In an interview, Xiaomi Vice President Xu Fei provided details about the upcoming 2027 European launch, including aspects that were previously undisclosed. “We conducted field research in June, led by several executives, to prepare for sales network establishment and strategic partnerships,” Xu stated, emphasizing the company’s proactive approach. “The entire organization is being mobilized.”

Xiaomi’s entry into the EV sector began last year with the introduction of the SU7 sedan, followed by the YU7 SUV. The company boasts deliveries exceeding 300,000 vehicles to date. The success of Xiaomi’s EV venture has propelled the company’s stock value by approximately 170% over the past year, making its international automotive ambitions a critical area of focus for investors.

Xu indicated that Xiaomi intends to replicate its successful China showroom model in Europe. “Users need a comprehensive experience with the car, including test drives, and an understanding of the Xiaomi ecosystem,” she explained, referring to the company’s vast product portfolio, encompassing smartphones to smart home appliances. The showrooms are envisioned as immersive brand experiences.

While Xu did not specify which model Xiaomi would launch in Europe, she confirmed the company would not develop an entirely new vehicle specifically for the European market. This suggests that a modified version of the existing SU7 or a future iteration is likely to be the spearhead of Xiaomi’s European EV offensive.

Xiaomi’s European rollout coincides with the European Union’s imposition of tariffs on Chinese-made EV imports. This has prompted manufacturers to re-evaluate their launch strategies, with some considering local production to mitigate the impact of tariffs and potentially qualify for local incentives. The EU is currently investigating Chinese EVs for potential unfair subsidies, which could lead to additional tariffs or other trade restrictions.

While Xu stated that establishing a production facility would not be Xiaomi’s “first step” in Europe, she acknowledged that it is a likely consideration for the future. “Theoretically, down the line, I believe we will definitely do that,” Xu responded when asked about the possibility of European manufacturing. “The reasoning is straightforward. We aspire to be among the top five players globally within 15 to 20 years. To achieve that, having a local factory is a necessity.” Building a European factory would not only address tariff concerns but also allow Xiaomi to tailor its vehicles to local preferences and potentially secure access to European supply chains.

Xiaomi’s 2027 European launch places it in direct competition with established players and rival Chinese brands, including Xpeng and BYD, which have already established a presence and articulated ambitious growth targets. Guangzhou Automobile Group, for instance, is aiming for a significant increase in European EV sales and is actively exploring local manufacturing options. BYD, in particular, has already announced plans to build a factory in Hungary, underscoring the trend towards localization.

Xu defended Xiaomi’s deliberate and measured approach, emphasizing the need for thorough preparation to ensure the vehicle is robust and suitable for European consumers. “We require ample time to ensure the car meets the high standards expected in the European market. When we enter the market, we are fully committed. This isn’t just another generic Chinese product; it’s a product designed to deliver the best user experience for European customers.” This careful planning acknowledges the diverse driving conditions, stringent safety regulations, and demanding consumer expectations present in Europe.