The adjustment of Xiaomi Auto's production line has come to an end, and the first-phase production capacity is about to be fully utilized. | Exclusive from 36Kr.

With production capacity approaching its limit and orders reaching new heights, Xiaomi Motors urgently needs to expand its production capacity.

In October, Xiaomi Motors' delivery volume exceeded 20,000 units for the first time, with a production capacity utilization rate of up to 160%. However, this is not enough to meet the consumers' enthusiasm for purchasing cars. Within 10 minutes, 3,680 units of the SU7 Ultra, with a pre-sale price of 814,900 yuan, were sold at the end of October, and it received a considerable number of orders as soon as it went on sale.

At the same time, the SU7 model is still selling well. Since August, its average weekly new order volume has remained stable at 4,000 units. After 7 months of sales, Xiaomi Motors' new order volume in October reached 23,000 units. Facing the increasing orders, Xiaomi urgently needs to expand its production capacity.

36Kr has learned that from November to December this year, Xiaomi SU7 will strive to achieve a monthly production of 24,000 units.

In the construction plan of Xiaomi Motors' first-phase factory, its rated annual production capacity is 150,000 units, that is, the rated monthly production capacity is 12,500 units. To achieve a monthly delivery of 24,000 units, Xiaomi's production line utilization rate has approached 200%. Obviously, Xiaomi has made a lot of preparations in terms of both production shifts and production efficiency.

According to the Daily Economic News, the second-phase factory of Xiaomi is also under intense preparation. Currently, the construction is carried out in two shifts in the morning and evening, and it is scheduled to be completed by mid-June next year.

36Kr has learned that Xiaomi Motors is eager for the commissioning progress of the second-phase factory. After the completion in June next year, the second-phase factory will undergo acceptance by Xiaomi and verification and filing by the local Housing and Urban-Rural Development Bureau. The earliest commissioning time is in July, and the latest is in August.

After commissioning, the two factories of Xiaomi will provide a total rated annual production capacity of 300,000 units.

Production Capacity and Orders Increase Simultaneously, Xiaomi's Delivery Task is Arduous

After the Xiaomi SU7 was launched on March 28, it quickly ignited consumers' enthusiasm for purchasing cars. Within just 24 hours, the number of firm orders reached 88,898 units. 36Kr previously reported that the day after the SU7 launch event, Xiaomi Motors' supply chain team went to various places across the country to discuss component supply issues with key suppliers. Accelerating the delivery of SU7 has become an urgent matter for Xiaomi Motors.

In the earnings communication meeting held in May, Lei Jun disclosed externally that Xiaomi Motors' factory will start double-shift production from June to increase the monthly delivery volume to 10,000 units. The original plan to deliver 100,000 units in 2024 has also been dynamically adjusted to a new goal of ensuring 100,000 units and striving for 120,000 units.

After more than half a year of production acceleration, Xiaomi Motors' delivery volume has achieved a new breakthrough. In October, the monthly delivery volume of Xiaomi SU7 exceeded 20,000 units for the first time. Lei Jun posted on a social platform that Xiaomi is expected to complete the annual delivery plan of 100,000 units ahead of schedule in November.

To achieve the same result, Tesla Model 3, which started delivery in 2017, took 18 months, and Zeekr 001, which was launched in 2021, took 10 months. Xiaomi, which only took 8 months, obviously has more substantial orders and a stronger supply chain capability.

Even so, Xiaomi still faces huge delivery pressure. The Xiaomi Motors app shows that the delivery cycle after the SU7 order is locked is 25 - 28 weeks. Currently, if you order the Xiaomi SU7, the earliest delivery time has been scheduled to April next year.

Xiaomi Motors app ordering page

While the factory's production capacity is striving to increase, the addition of new Xiaomi SU7 orders has not stopped.

It is reported that two months after its launch, the new orders of Xiaomi Motors entered a plateau period. But after June, the SU7 showed an explosive trend again, with an average weekly new order volume of about 4,000 units. In October, after the reservation of the SU7 Ultra version was opened, its monthly new order volume reached 23,000 units, which is higher than the monthly delivery volume.

At present, the planned production capacity of Xiaomi's first-phase factory is only 150,000 units per year. At the current production speed of 20,000 units, its production capacity utilization rate is as high as 160%. By the end of this year, Xiaomi will once again challenge the production capacity limit and strive for a monthly production of 24,000 units to alleviate the delivery pressure.

The production line is already operating at full capacity, but the orders are still increasing. Xiaomi has to continue to focus on expanding production capacity.

Two New Vehicles Will Be Put into Production, Construction of the New Factory is Urgent

In 2025, Xiaomi SU7 Ultra will be the first to start production and deliveries will begin in March. At the same time, 36Kr previously reported that the second new SUV model of Xiaomi Motors, code-named "MX11", will also achieve mass production and delivery within 2025.

From January to September this year, in the sales volume of narrow passenger vehicles, the proportion of SUV models has exceeded 50%. In the Chinese market where SUV models are obviously more popular, Xiaomi must make sufficient production capacity preparations for the new vehicles.

Next year, Xiaomi will have three models, SU7, SU7 Ultra, and the new SUV, put into production simultaneously. The first-phase factory with an annual production capacity planning of 150,000 units is obviously struggling, and the expansion of the second-phase factory is extremely urgent.

Public documents show that the land for Xiaomi's second-phase factory is adjacent to the first-phase factory, and its construction area is similar. It covers an area of 718,000 square meters, with a total construction area of approximately 400,000 square meters, and the production capacity planning is also 150,000 units per year. Currently, the construction site operates in two shifts in the morning and evening.

Insiders told 36Kr that Xiaomi requires the factory to be put into production as soon as possible, and the current construction schedule is to be completed in June 2025. After the completion, the second-phase factory will first undergo acceptance by the owner, Xiaomi, and then after passing the verification by the Housing and Urban-Rural Development Bureau and successful filing, "the second-phase factory can be officially put into production as early as July and at the latest August."

Compared with the 14-month construction period of the first-phase factory, the progress of the second-phase factory has significantly accelerated. After the completion of the construction, the first and second-phase factories of Xiaomi will provide a total rated annual production capacity of 300,000 units, which will effectively alleviate the delivery pressure of Xiaomi Motors.

The sales competition of new energy vehicles in China continues. Ideal Auto stated in the third-quarter earnings conference that due to the continuous popularity of the L6 model, Ideal needs to expand production during the Spring Festival in 2025 to meet the delivery needs of consumers.

With the increase of new vehicles, Xiaomi Motors' supply chain will also face new challenges. In addition to capacity building, how to further enhance Xiaomi's discourse power in the automotive supply chain to ensure that component supply and vehicle production are in the same pace? How to coordinate orders, production capacity, and supply chain resources will become a long-term challenge for Xiaomi Motors.