Werden Xiaomi und BYD zusammenkommen? Lei Jun und Wang Chuanfu erscheinen in der Fabrik.

Netizens reported that Lei Jun, the founder of Xiaomi Group, and Wang Chuanfu, the chairman and president of BYD, met recently and visited the Xiaomi car factory together.

This has sparked speculation about whether the two companies will further deepen their cooperation.

First, Xiaomi and BYD have their own strengths

BYD ranks first in production capacity and sales volume, winning by quantity.

Xiaomi ranks first in product capabilities and marketing in the industry, winning by intelligence.

Through in - depth cooperation, the two sides can learn from each other's strengths and make up for each other's weaknesses, and exchange what they have.

1. Long - term supply chain binding

BYD Electronics is the core contract manufacturer of Xiaomi mobile phones, accounting for about 40% of Xiaomi's mobile phone production capacity.

This cooperation has extended to the automotive field. BYD provides blade batteries for Xiaomi's SU7 and YU7. Among them, both the standard and Pro versions of the YU7 are equipped with Fudi batteries.

The tacit understanding between the two sides in battery supply and parts manufacturing lays the foundation for further cooperation.

2. Significant technological complementarity

BYD's manufacturing barriers:

It has the world's largest vertically integrated automotive industry chain, with full self - research from batteries, motors to chips. In the first quarter of 2025, its net profit was 9.155 billion yuan, a year - on - year increase of 100.38%. Its production capacity scale and cost control ability lead the industry.

Xiaomi's intelligent ecosystem:

It has deep accumulation in fields such as in - vehicle OS, voice interaction, and smart home interconnection. The intelligent cockpit experience of the SU7 is evaluated by users as "redefining the interaction between people and vehicles".

3. 1 + 1 is greater than 2

If the two sides deeply collaborate in the battery + intelligent field (such as jointly developing an intelligent battery management system), they may form a differentiated competitive advantage.

Second, is there a need for cooperation?

The automotive circle has recently highly questioned BYD's capital chain, while Xiaomi has a large amount of funds and abundant cash flow.

On the other hand, Xiaomi's car production capacity is insufficient, and the waiting list for the recently released YU7 is as long as 58 months.

If Xiaomi can make a strategic investment in BYD and then conduct in - depth cooperation, BYD can obtain capital liquidity, and Xiaomi may be able to use BYD's production lines. It's a win - win situation.

However, the above two points are more of a topic for onlookers. According to Zhang Dongwei's information, in fact, neither Xiaomi's car business nor BYD is currently facing major difficulties.

1. Xiaomi's production capacity pressure is rapidly alleviating

Although the locked - in order volume of the YU7 has exceeded records, Xiaomi's own production capacity is rapidly increasing.

After the second - phase factory of Xiaomi cars is put into operation in July, the total production capacity will reach 350,000 vehicles per year, and it is expected to deliver 350,000 vehicles in 2025.

After the production capacity ramps up, the delivery cycle can be shortened from 58 months to less than 12 months. Therefore, the short - term demand for contract manufacturing is limited.

A more likely cooperation direction is for BYD to open up part of its battery production capacity rather than engage in whole - vehicle contract manufacturing.

2. The doubts about BYD's capital chain lack basis

BYD's cash flow reached 91.7 billion yuan in the first quarter of 2025, and it supplemented funds through a US$5.6 billion H - share placement. The financing is mainly used for overseas expansion and R & D investment.

Although its asset - liability ratio is high (78%), the proportion of interest - bearing liabilities is low, and its cash flow is sufficient to cover short - term debts.

Therefore, BYD does not rely on Xiaomi's investment to solve its liquidity problem, but is more seeking technological synergy.

Third, what will they cooperate on?

In fact, the possibility of cooperation between Xiaomi and BYD is very high, including from "parts supply" to "ecosystem integration".

In the short term, the two sides can reach an agreement on technological synergy and standard co - construction.

Battery technology cooperation:

Xiaomi's SU7 Ultra is planned to be equipped with BYD's latest solid - state battery. The two sides may jointly develop high - energy - density batteries suitable for intelligent driving.

Intelligent ecosystem interconnection:

Lei Jun once proposed to "unify the in - vehicle ecosystem interface" so that BYD car owners can control their vehicles through Xiaomi mobile phones, and vice versa. If this cross - brand compatibility is implemented, it will break the industry's ecological barriers.

In the medium and long term, the two sides can conduct joint R & D and overseas cooperation

Jointly develop models:

Learning from the "intelligent selected car" model of Huawei and Seres, Xiaomi can provide the intelligent system, and BYD can provide the manufacturing platform to launch co - branded models.

Complementary overseas markets:

Combining BYD's channel network in Southeast Asia and Europe with Xiaomi's global IoT ecosystem can accelerate the penetration of both sides in overseas markets.

Of course, Xiaomi and BYD have completely different corporate cultures.

BYD emphasizes vertical integration and self - research of technology, while Xiaomi is good at open ecosystems and user operation.

The differences in their concepts in R & D decision - making and supply chain management may affect the depth of cooperation.

Summary: Mutual admiration, a legendary epic

Lei Jun and Wang Chuanfu are legendary heroes in digital technology and automotive technology respectively, both being a combination of technical experts and marketing masters.

If the two sides can really come together, it will be a good story.

What do you think of this possibility?

This article is from the WeChat public account "Zhang Dongwei". Author: Zhang Dongwei. Republished by 36Kr with authorization.