Xiaomi, a brand most often associated with smartphones and other personal electronics, has moved into cars. The company started building electric vehicles in April 2024 and now reports that 500,000 EVs have been produced since the launch. For a newcomer, that pace looks striking.

The standout so far is the YU7 crossover, which has surpassed the Tesla Model Y in units sold on China’s home market. That result points to strong trust among Chinese buyers in Xiaomi and to the appeal of its technical package and pricing.

The financial picture is equally robust. In the third quarter of 2025, Xiaomi’s revenue rose 22% year over year to a substantial $16 billion, while net profit climbed even faster, up 81% for the period. Taken together, these figures suggest momentum that few new carmakers enjoy early on.

Xiaomi is also preparing to step onto global stages, with a clear emphasis on Europe, a region it views as fertile ground for the brand. A U.S. debut, however, remains on hold because the styling of some models evokes Tesla, which brings potential legal risks. The choice to prioritize Europe first reads as a pragmatic move.