Xiaomi Expands EV Production With $116 Million Land Acquisition in China

Xiaomi is ramping up its electric vehicle (EV) strategy for further growth expansion by acquiring a 53-hectare (131-acre) plot of land in Beijing’s Yizhuang district for 842 million yuan ($116 million).

The new site, purchased through the subsidiary Xiaomi Jingxi Technology Ltd., is adjacent to the company’s existing EV plant. According to filings with the Beijing Municipal Commission of Planning and Natural Resources, the land will be used for “development of the high-end automobile and new energy intelligent vehicle industry.”

As a result, this expansion could potentially increase Xiaomi’s annual production capacity to 300,000 units once completed. The company’s current plant has an annual capacity of 150,000 units in its first phase.

Moreover, Xiaomi’s Founder and CEO Lei Jun announced that the company has already completed its planned capacity expansion. Xiaomi is now on track to meet its annual target of 100,000 units by early November, around two months earlier than initially projected. This accelerated timeline demonstrates the strong demand for Xiaomi’s first EV model, the SU7.

Xiaomi’s Success With SU7

Xiaomi’s entry into the EV market has been remarkably successful, with over 30,000 units of the SU7 delivered in just over three months since its launch in March 2024. The base model SU7, priced at 215,900 yuan ($29,900), represents the first step in the company’s $10 billion plan to become a major force in the EV industry.

Notably, Xiaomi also recently reported that its SU7 is now set to reach its 100,000-unit production target by early November. This resulting makes a full two months ahead of schedule.

Read More: Xiaomi EV Production Set To Surpass 100,000-Unit Target Ahead Of Schedule

With Xiaomi’s progress being particularly notable given the slowdown of the EV market due to shifting market trends, the company continues to expand its EV operations. As Xiaomi’s EV plans elevate to higher standards, the EV market will become more competitive as the company reaches its production targets.

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