Xiaomi Auto delivered its best quarterly report, turning a profit of 700 million yuan. President LU Weibing said: The annual sales target can be achieved this week.

Earning a net profit of 6,400 yuan per car sold, Xiaomi Auto has started to make money.

Xiaomi Auto will achieve its annual sales target of 350,000 units ahead of schedule, and its delivery volume may exceed 400,000 units in 2025.

According to a report from CheDongXi on November 18th, this afternoon, Xiaomi Group released its financial report for the third quarter of 2025. In the third quarter, the sales revenue of smart electric vehicles reached 28.3 billion yuan, a record high. The gross profit margin reached 25.5%, and the smart electric vehicle and AI innovation business segment achieved single - quarter operating profit for the first time, with an operating income of 700 million yuan.

▲Xiaomi Group released its financial report for the third quarter of 2025

In addition, Lu Weibing, a partner and president of Xiaomi Group, further interpreted the sales achievements of Xiaomi Auto and next year's performance during the earnings conference.

1. Xiaomi Auto will achieve its annual sales target more than one month ahead of schedule, and it is expected to reach the annual delivery target of 350,000 units this week.

2. The delivery volume of Xiaomi Auto will continue to grow next year, while the gross profit margin of the automotive business may decline.

01.

Achieving annual sales one month ahead of schedule

The automotive gross profit margin may decline next year

During the Q&A session of the third - quarter earnings conference, Xiaomi's management, represented by Lu Weibing, provided detailed responses on topics such as the future gross profit margin of the automotive business and the rhythm of achieving the annual sales target.

Lu Weibing first announced the progress of achieving this year's annual sales target.

In the first three quarters of this year, Xiaomi Auto had a cumulative delivery of 266,000 vehicles. Considering that more than 40,000 new vehicles were delivered in October this year, Xiaomi officially expects that this week, Xiaomi Auto will achieve a cumulative annual delivery volume of 350,000 vehicles, and the delivery volume is expected to continue to grow next year.

Based on Lu Weibing's speech, we can simply estimate that Xiaomi Auto's delivery volume this year may reach 400,000 units.

Lu Weibing also gave a preview of Xiaomi Auto's future performance.

It is expected that the gross profit margin of Xiaomi Auto will remain basically stable in the fourth quarter of this year, but it will face great challenges in 2026. It is expected that the gross profit margin of Xiaomi Auto next year may decline compared with this year.

Lu Weibing explained two reasons. First, next year, all automotive manufacturers will be affected by the halving of the purchase tax subsidy policy.

Second, currently, there are many participants in the automotive industry, and the industry is still in its very early stage of development. It is expected that the market will go through a period of fierce competition before achieving effective integration and convergence.

In addition, Lu Weibing also emphasized that Xiaomi will not initiate price wars actively or follow price wars blindly, but will stimulate user demand through innovation.

02.

Xiaomi Auto presents its best quarterly report

Operating income reaches 700 million yuan

Judging from the financial data, the smart electric vehicle and AI innovation business segment of Xiaomi Auto performed well in the third quarter of 2025. The revenue from smart electric vehicles reached 28.3 billion yuan, accounting for 98% of the total revenue of the smart electric vehicle and AI innovation business. Compared with 20.6 billion yuan in the second quarter, it increased by 7.7 billion yuan, a quarter - on - quarter increase of 37%. This was mainly due to the increase in both vehicle delivery volume and ASP.

▲The performance of Xiaomi Group's automotive and AI innovation business in the third quarter

In the third quarter, Xiaomi Auto delivered 108,800 new vehicles, a quarter - on - quarter increase of 33.8% compared with the 81,300 vehicles delivered in the second quarter.

The ASP of smart electric vehicles reached 260,000 yuan per vehicle in the third quarter of this year, a quarter - on - quarter increase of 2.5% compared with 253,700 yuan per vehicle in the second quarter of 2025. The official pointed out that this was mainly due to the increase in the delivery volume of the YU7 series with a relatively high ASP.

▲The revenue of Xiaomi Group's automotive and AI innovation business

Meanwhile, the smart electric vehicle and AI innovation business of Xiaomi Auto successfully turned from an operating loss of 300 million yuan in the second quarter to an operating income of 700 million yuan. Simply calculated, the net profit per vehicle sold is 6,434 yuan.

In terms of gross profit margin, the gross profit margin of Xiaomi Auto and the AI innovation business in the third quarter was 25.5%, a significant increase compared with the 17.1% gross profit margin in the same period last year. This gross profit margin has exceeded that of many leading automotive companies.

In the second quarter of this year, the gross profit margin of Xiaomi Auto was 26.4%. The decline in the gross profit margin of Xiaomi Auto in the third quarter compared with the second quarter was mainly due to the increase in the cost of core components and the decrease in the proportion of the delivery volume of the Xiaomi SU7 Ultra.

▲The gross profit margin of Xiaomi's automotive and AI innovation business in the third quarter

In terms of R & D expenses, Xiaomi Group's R & D expenses in the third quarter of 2025 were 9.1 billion yuan, a 16.7% increase compared with 7.8 billion yuan in the second quarter of 2025. This was mainly due to the progress of R & D projects related to smart electric vehicles, AI innovation business, and mobile phone × AIoT, as well as the increase in the salaries of R & D personnel.

03.

Conclusion: The automotive business of Xiaomi is developing steadily

Overall, Xiaomi is consolidating its gross profit margin in the electric vehicle field by relying on its high - end positioning and platform advantages. At the same time, it is making flexible adjustments in response to some uncertainties in the automotive market next year, without sacrificing its strategic rhythm blindly for market competition.

Although Xiaomi Auto's management disclosed relatively little information about the automotive business during this earnings conference call, this financial report also proves that Xiaomi Auto has achieved steady business development and is striving for higher delivery volume and performance targets.

This article is from the WeChat official account "CheDongXi". Author: Er Yan, Editor: Zhi Hao. Republished by 36Kr with permission.