Chinese tech conglomerate Xiaomi is making strategic preparations for its European electric vehicle (EV) market entry in 2027, a move that signifies its ambition to become a major global automotive player. The company, known for its consumer electronics and smartphones, is actively scouting for showroom locations across Europe and is not ruling out the possibility of local manufacturing in the future. This expansion positions Xiaomi alongside other Chinese EV manufacturers like Xpeng and BYD, who are also actively pursuing growth in the European market.
In a recent interview, Xu Fei, a vice president at Xiaomi, provided new details on the company’s approach. Field research conducted in June focused on establishing a sales network and identifying potential partnerships, indicating a comprehensive organizational effort underway. Xiaomi officially entered the automotive sector last year with its SU7 sedan and has since expanded its EV lineup. The strong performance of its electric vehicles in China has significantly boosted investor confidence, with Xiaomi’s stock experiencing a substantial surge over the past twelve months.
The company intends to replicate its successful showroom model in China, where customers can experience not only test drives but also the broader Xiaomi ecosystem, which encompasses a wide array of products from smart devices to home appliances. While the specific models destined for the European market have not been disclosed, Xiaomi has indicated they will not be entirely new designs, suggesting a focus on adapting existing successful platforms.
Xiaomi’s European launch occurs as the European Union implements tariffs on Chinese-made EVs. This regulatory landscape is prompting many manufacturers to re-evaluate their market entry strategies, with some considering localized production. Xu confirmed that establishing a manufacturing facility is not an immediate priority but is a strategic consideration for the long term. The rationale behind this potential future investment is to support Xiaomi’s overarching goal of becoming one of the top five global automotive players within the next fifteen to twenty years.
The company’s entry into Europe will see it compete with established domestic rivals who have already outlined aggressive expansion plans. Guangzhou Automobile Group, for instance, aims for a significant increase in its European EV sales and is also exploring local manufacturing. Xiaomi, however, is adopting a more measured approach, emphasizing thorough preparation to ensure its vehicles meet the high standards expected by European consumers. The company aims to present its EVs not merely as foreign products but as offerings that provide a superior user experience tailored for the European market.
Michael Carter holds a BA in Economics from the University of Chicago and is a CFA charterholder. With over a decade of experience at top financial publications, he specializes in equity markets, mergers & acquisitions, and macroeconomic trends, delivering clear, data-driven insights that help readers navigate complex market movements.