Xiaomi to Set Up R & D and Design Centers in Europe for Its Cars, Aiming Beyond Track Records | Exclusive from 36Kr

Xiaomi Auto is seeking new breakthroughs in technology and market in Europe.

36Kr has exclusively learned that Xiaomi Auto is steadily advancing its European layout. In Munich, Germany, Xiaomi has established an automotive R & D center. Currently, the R & D center has a staff of less than 50, and its main members are all management and business experts.

An informed source told 36Kr that the Munich R & D center of Xiaomi Auto currently has no large - scale recruitment needs and is positioned as an elite team. In addition to the continued R & D of the Nürburgring limited - edition of Xiaomi SU7 Ultra, the team will also participate in the performance tuning of Xiaomi's subsequent full - line models.

Beyond R & D, Xiaomi Auto also intends to prepare for some overseas sales operations.

36Kr previously reported that in December 2024, the International Department of Xiaomi Group established a preparatory team for the overseas sales business of automobiles and started recruiting for positions such as market research. It intends to choose an appropriate time to test the sales waters in Spain, Germany, France and other places first.

In addition, Xiaomi also intends to continue to discover design talents and incubate a new automotive design center in Europe.

36Kr verified this information with Xiaomi Auto. Xiaomi officially confirmed the existence of the European R & D center but denied the European sales system.

The establishment of the European R & D center is not only an expansion of Xiaomi Auto's R & D capabilities but also a strategic layout for brand differentiation.

The racetrack is usually the starting point for new brands to attract public attention. Nowadays, industry competition has evolved from electrification to intelligence. A number of foreign luxury brands such as Mercedes - Benz, BMW, and Porsche are all catching up in the R & D of intelligent cockpits and intelligent driving.

In the intelligent competition, Xiaomi has chosen an "old path" of traditional automotive brands: to continue to challenge the racetrack and deeply engage in automotive performance R & D.

Deploying European R & D, Xiaomi aims at high - performance tuning capabilities

Previously, foreign media had exposed the list of some members of Xiaomi Auto's Munich R & D center.

Rudolf Dittrich, the former general manager of BMW's limited - edition vehicle department, now serves as the head of Xiaomi Auto's European R & D center. Xiaomi has also poached automotive experts with long - term experience in racing research, such as Jannis Hellwig, the former head of BMW FE performance management and simulation, and Ricard Aiguabella Macau, the former aerodynamics expert for new Ferrari F1 cars.

"A core task of this team is to continue to modify the Nürburgring limited - edition of Xiaomi SU7 Ultra and run on the Nürburgring track until it achieves a result similar to that on the Shanghai International Circuit," an informed source told 36Kr. The track result is the core indicator for Xiaomi Auto's European R & D.

At the launch event of Xiaomi SU7 Ultra, Lei Jun announced that Xiaomi SU7 Ultra was also preparing a Nürburgring track limited - edition priced at 814,900 yuan and would launch a 100,000 - yuan track option package for consumers to choose from.

Compared with the current mass - produced Xiaomi SU7 Ultra, the overall configuration of the Nürburgring limited - edition has been significantly improved.

"The Nürburgring limited - edition is aimed at outperforming Porsche. Many parts on the car are used without considering costs," an industry insider told 36Kr. "However, there is still a long way to go before the limited - edition can truly outperform and be mass - produced and delivered to Chinese users, which is why Xiaomi has invited so many track experts."

However, the European R & D center was not established solely for track competitions. Xiaomi Auto hopes to form a R & D system similar to that of BMW and Porsche: to research and test new technologies on racing cars and then gradually apply the track technologies to mass - produced models.

This is a strategic approach commonly used by traditional luxury sports brands.

Compared with ordinary roads, racing cars have more extreme requirements for speed, temperature, durability and other indicators. Track results can force enterprises to promote technological R & D. The reason why Xiaomi SU7 Ultra has successfully established the label of "high - performance electric vehicle" is that it has achieved excellent results on multiple tracks.

Consumers are more willing to pay a premium for technologies "derived from the racetrack". At the same time, the application of track technologies will also give other Xiaomi models a more "reliable" technology label.

By deploying R & D centers in Europe and recruiting track technology talents, Xiaomi hopes to quickly absorb the excellent experience of Europe's century - old automotive industry.

This is not only a continuation of the challenge of the Nürburgring limited - edition of Xiaomi SU7 Ultra but also an important step for Xiaomi Auto to advance towards a "high - performance" brand.

Going global to Europe, Xiaomi Auto breaks into the global market

Previously, Lei Jun publicly revealed that he aims to sell Xiaomi - branded cars in Europe before 2030.

An informed source told 36Kr that the preparatory team for the overseas sales business of automobiles has now started working in Düsseldorf, Germany. It intends to choose an appropriate time to test the sales waters in Spain, Germany, France and other places first.

Compared with other Chinese automakers, Xiaomi Auto has obvious advantages in European sales.

Before the launch of Xiaomi's automotive business, the revenue from overseas markets accounted for more than 50% of the group's total revenue. Especially in Europe, a globally recognized high - net - worth market, Xiaomi's share in the smartphone market once reached 18%, ranking third in Europe.

Xiaomi does have a certain brand awareness in the European market, which is the basic guarantee for Xiaomi Auto to go global.

SU7 and SU7 Ultra also fill the gap in the European market for high - end new - energy performance cars. For traditional luxury brands such as BBA, their performance car series are still mainly in the form of pure fuel or hybrid vehicles.

There are currently no electric vehicles on sale in BMW's M - Power series, and only a highly camouflaged car suspected to be iM3 is undergoing road tests; Mercedes - Benz launched a high - performance electric vehicle, EQE AMG, in 2023. Due to its high price of over 100,000 euros, it is difficult for this model to achieve a breakthrough in sales.

With a more affordable price, more advanced performance, and better intelligent capabilities, Xiaomi SU7 and SU7 Ultra have strong competitiveness at the product level when entering the European market.

However, there are still obstacles. Xiaomi has achieved initial success in high - end development in the domestic market. But in overseas markets, Xiaomi still faces the problem of insufficient brand recognition in the high - end market.

The overseas prices of Xiaomi SU7, which is priced over 200,000 yuan in China, and Xiaomi SU7 Ultra, which is priced over 500,000 yuan in China, will be even higher. Moreover, the uncertainty of the global economic environment will further increase the cost of Xiaomi Auto's overseas expansion.

For Xiaomi, exporting complete vehicles is not a small challenge. An industry insider told 36Kr that "there is currently no demand for European localization." Xiaomi Auto's current actions in Europe are mainly to gauge the reaction of the European market and streamline the process of Xiaomi's overseas expansion in Europe.

From the track experts at the Munich R & D center to the market outpost in Düsseldorf, Xiaomi's European layout is aimed at the path of brand high - end development: Can it successfully convert lap times into brand premium?