Aug. 22, 2024
Lei Jun Responds to Reports of Xiaomi Losing Over 60,000 Yuan Per Car Sale
TMTPOST--"Building cars is cool, but achieving success will be even cooler! Xiaomi EV is still in the investment phase, and I hope you can understand," said Lei Jun, the CEO of Xiaomi Group on Wednesday night. Xiaomi released its first quarterly report on its automotive business on Wednesday. Following this, the topic "Xiaomi Loses Over 60,000 Yuan on Every Car Sold" trended on social media. According to reports, Xiaomi's innovative businesses, including its smart electric vehicles, generated revenue of 6.4 billion yuan in the quarter. Xiaomi also reported the delivery of 27,307 new cars during the period. Despite the positive sales figures, Xiaomi’s innovative business segment, including its smart electric vehicles, incurred a net loss of 1.8 billion yuan, leading to an estimated loss of over 60,000 yuan per vehicle. The losses are considered normal for the early stages of the automotive business, as the company needs to allocate costs for factory construction, technology research and development, personnel, and store expansion.
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