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Xiaomi Reports Strong Revenue Growth, Expands Electric Vehicle ...
2024-08-21 23:55:08
Automotive
Business

Xiaomi Reports Strong Revenue Growth, Expands Electric Vehicle Production

Chinese smartphone manufacturer Xiaomi achieved record revenue and net profit, with strong sales in its electric vehicle (EV) division. Xiaomi's revenue in Q2 2024 reached 88.9 billion yuan, exceeding estimates, and its EV business contributed 6.18 billion yuan to earnings.

The company delivered over 27,000 units of its first EV model, the SU7, in Q2. Xiaomi aims to ramp up production capacity to 150,000 vehicles per year and achieve 120,000 EV deliveries by year-end.

In addition to smartphones, Xiaomi's product portfolio includes kitchen appliances and vacuum cleaners. However, the European Commission and the USA are considering imposing import tariffs on Chinese EVs, posing a potential challenge to Xiaomi's international expansion.

Despite the positive results, Xiaomi's stock only saw a slight increase.

Related news on that topic:

EU Imposes Tariffs on Chinese Electric Cars

The EU has implemented punitive tariffs on electric cars from China, with rates set for manufacturers. China has criticized the tariffs and called on the WTO. The Chamber of Commerce has also voiced its criticism. However, some politicians, like Habeck, have shown understanding. On the other hand, Scholz and the VDA are critics of the tariffs. A study warns of potential damage to European manufacturers. Additionally, the elimination of state premiums has led to a decrease in sales figures for electric cars. Meanwhile, the EU has revised tariffs on Chinese-made Tesla EVs, lowering rates for several Chinese electric vehicle companies. Tesla now faces a 9% tariff, down from almost 21%. BYD, Geely, and SAIC also saw slight decreases in their tariffs. The final decision on countervailing duties from China is expected by the end of October. Some companies are considering producing cars in Europe or other regions to avoid these tariffs. Furthermore, the EU has decided not to impose additional tariffs on Chinese electric cars, for now, as no material damage to EU companies has been identified. The final decision on tariffs will be voted on by the 27 EU member states.

EU Refrains from Imposing Additional Tariffs on Chinese Electric ... for Now

The EU has decided not to impose additional tariffs on Chinese electric vehicles, which are 20% cheaper than EU models, for the time being. Instead, the tariff rates have been adjusted: BYD 17.0%, Geely 19.3% (for Smart models #1, #3, and Volvo EX30), SAIC 36.3% (for the MG4, which ranks second behind the VW ID.3 in Germany), and Tesla 9%. Companies cooperating with the EU will face a tariff of 21.3% (originally 20.8%). The final decision lies with the 27 EU member states, and a diplomatic solution with China is being sought. The EU accuses Chinese electric cars of benefiting from unfair subsidies, but no provisional tariffs will be imposed for now. The tariff rates have been adjusted, with BYD at 17.0%, Geely at 19.3%, SAIC at 36.3%, and Tesla at 9%. The decision must be approved by the majority of the 27 EU member states, and a diplomatic solution with China is hoped for. Car manufacturers and other affected parties can request hearings and submit statements. The final decision will be announced by the end of October.

Read 2 more recent news on this topic

The press radar on this topic:

seekingalpha
21. August 2024 um 12:00

Xiaomi reports Q2 results

Economy
Finance
Xiaomi press release ( OTCPK:XIACF ): Q2 revenue of RMB88.89B (+32.0% Y/Y). Adjusted net profit increased by 20.1% from RMB5.1 billion to RMB6.2 billion in the second quarter of 2024. More on Xiaomi Xiaomi: Long Growth Runway, Undemanding Valuation Xiaomi Corporation (XIACF) Q1 2024 Earnings Call Transcript Xiaomi Corporation 2024 Q1 - Results - Earnings Call Presentation Barclays initiates on Xiaomi with Overweight, sees attractive valuation and potential from GenAI Apple's wearable sales dec..
Big Tech - South China Morning Post
21. August 2024 um 12:27

Xiaomi’s first EV pulls in US$900 million in second quarter | South China Morning Post

Economy
Technology
Finance
Xiaomi's EV business revenue reached US$897.8 million, with a 32% year-on-year increase to 88.9 billion yuan in Q2, driven by strong smartphone sales. Profits rose by 38.3% to 5.1 billion yuan. The company delivered 27,307 SU7s in Q2, with a 15% gross profit margin. Lu Weibing disclosed the financials during an earnings press conference. Founder Lei Jun stated Xiaomi would sell cars at a loss during the SU7 launch.
focus
21. August 2024 um 11:59

Smartphones and Electric Vehicles - Xiaomi Reports Strong Revenue Growth, Stock Only Rises Slightly

Economy
Technology
Finance
Xiaomi, the third-largest smartphone manufacturer with a 14.8% market share, achieved record revenue of 88.9 billion Renminbi and a net profit of 6.18 billion Renminbi; Global revenue in 2023 is expected to be $38.2 billion, with a profit of $2.46 billion; The product portfolio also includes kitchen appliances and vacuum cleaners; The electric vehicle SU7 is selling well, and production capacity is to be expanded to 150,000 vehicles per year; The European Commission and the USA are threatening..
neowin
21. August 2024 um 18:02

Xiaomi's auto business is now contributing to the company's earnings for the quarter

Economy
Technology
Finance
Xiaomi, a Chinese OEM, has expanded into EVs, contributing 6.2B yuan to Q2 2022 earnings; its revenue rose 32% to 88.9B yuan, exceeding estimates, with 42.3M smartphone shipments, a 27.4% growth; its new EV model received 88,898 orders in 24 hours and delivered 27,307 units in Q2 2022; Xiaomi aims for the EV unit to become profitable as production ramps up, targeting 120,000 EV deliveries by year-end.
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