(The May 23 story has been corrected to say SU7, not SUV7, in penultimate paragraph; three models, not four, in last paragraph)
Liam Mo and Casey Hall
BEIJING (Reuters) – China’s Xiaomi OTC said it aims to deliver 120,000 electric vehicles (EVs) this year, up from an initial target of 100,000, and will introduce double-shift production to meet growing demand for its electric vehicles. .
Xiaomi made the announcement during its earnings call after the company on Thursday reported stronger-than-expected first-quarter revenue growth of 27% year-on-year, driven by strong smartphone sales amid a recovery market.
Xiaomi began shipping its SU7 EV to customers in early April, fulfilling CEO Lei Jun’s dream and capping years of efforts to enter the electric vehicle market as part of the company’s strategy to diversify away from smartphones.
Xiaomi President Lu Weibing said by phone that two-shift production will begin from next month to ensure monthly shipments exceed 10,000 units. Lu said demand for the SU7 has been strong, with cumulative recorded orders reaching 88,063 vehicles as of the end of last month.
In the first three months of this year, Xiaomi’s revenue was 75.5 billion yuan ($10.42 billion), compared with 73.3 billion yuan estimated by analysts according to LSEG.
Adjusted net profit was 6.49 billion yuan, beating analysts’ estimates of 4.94 billion yuan.
The global smartphone market has been showing signs of recovery since late last year after a long period of stagnation.
Xiaomi’s global smartphone shipments rose 33% to 40.7 million units in the first quarter, helping the company capture 14% of the market and take third place, according to industry research firm Canalys.
In China, Xiaomi’s biggest smartphone market, shipments rose 8.6%, according to research firm Counterpoint.
Lu said the company will begin reporting vehicle revenue separately starting in the current quarter.
Analysts at brokerage SPDB International wrote in a note that Xiaomi’s automotive revenue is expected to reach 23.7 billion yuan in 2024 and more than double to 50.8 billion yuan in 2025.
Xiaomi shares have risen over the past two months as investors cheered the company’s progress in electric vehicles. Its current share price is about 30% higher than it was at the end of March, when the company announced the price of its SU7 series.
SU7 currently offers three models with prices ranging from RMB 215,900 to RMB 299,900. As of May 15, Xiaomi has delivered 10,000 electric vehicles.
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