Xiaomi Group's Q2 Results SU7 Deliveries, Losses and Future Outlook

TapTechNews August 21st news, Xiaomi Group announced its latest Q2 results today. Xiaomi SU7 delivered a total of 27,307 units in the second quarter, with automotive sales revenue reaching 6.4 billion yuan and a gross profit margin of 15.4%. TapTechNews noted that Xiaomi's smart electric vehicle suffered a net loss of 180 million yuan this quarter and is still in continuous investment.

Lu Weibing, 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 cars is relatively small, and the automotive industry is a typical industry of economies of scale, and there is confidence to expand the scale of cars in the future.

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

Xiaomi Group stated that it is expected to complete the cumulative delivery target of 100,000 new cars of the Xiaomi SU7 series ahead of schedule in November 2024, and will冲刺 (rush towards) the new target of cumulative delivery of 120,000 new cars throughout the year 2024.

Lu Weibing is relatively satisfied with the overall gross profit margin of 15.4% of Xiaomi's smart electric vehicle and other new businesses in the second quarter of this year. In the future, as the scale of Xiaomi cars increases, costs will be apportioned. Since this year, Xiaomi's automotive business has exceeded expectations, and the current new orders are very stable, and there is confidence in improving the gross profit margin throughout the year.

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Xiaomi Group's Q2 2024 revenue was 88.89 billion yuan: a year-on-year increase of 32%, setting a new historical high for a single quarter.