Xiaomi's Car Business Selling at a Loss and Responses

TapTechNews August 22nd news, Bianiushi today showed a screenshot in which Xu Jiye, the PR head of Jiyue Automobile, blasted Xiaomi and Lei Jun in the circle of friends for selling cars at a loss. The screenshot shows that Xu Jiye believes that selling cars at a loss is dumping and criticized it fiercely.

Blogger @Li Angangang said: Help clarify that this picture looks clearly Photoshopped, and people from Jiyue didn't make similar remarks, don't be led into a war by those with ulterior motives.

Xiaomi Group announced the latest 2024 Q2 results last night. A total of 27,307 units of Xiaomi SU7 were delivered in the second quarter, and the auto sales revenue reached 6.4 billion yuan, with a gross profit margin of 15.4%.

TapTechNews noted that the net loss of Xiaomi's smart electric vehicle in the second quarter was 1.8 billion yuan and is still in continuous investment. Based on this calculation, Xiaomi's car has a loss of more than 60,000 yuan per car. This morning, the topic of Xiaomi's car loss also topped the Weibo hot search list.

In response, Lei Jun, the founder, chairman and CEO of Xiaomi, responded on Weibo: Making cars is very hard, but success must be very cool! Xiaomi's car is still in the investment stage, and I hope everyone understands.

In addition, Lu Weibing, the president of Xiaomi Group, talked about the loss of Xiaomi SU7 in an interview. He believes there are two reasons:

First, the current scale of Xiaomi's car is relatively small, and the car is a typical industry of economies of scale, and there is confidence to expand the scale of the car in the future;

Second, Xiaomi's first car is a pure electric sedan, and its investment cost is relatively high itself, and it still takes some time to digest this part of the cost.