Analysis of the Impact of Xiaomi SU7 Product Upgrades on Xiaomi Group's Market Competitiveness

Based on the above data collection and analysis, I now present to you the

.

---

According to the content of the New-Generation SU7 Q&A with netizens released by Xiaomi Auto, this upgrade covers five core dimensions [1]:

• Full standard equipment of 2200MPa Xiaomi Super Steel embedded roll cage
  : Uses industry-leading high-strength steel to significantly improve body rigidity
• • New 1500MPa anti-scratch bottom beam added to the bottom of the battery pack
    : Enhances bottom protection capability
• Full standard equipment of 9 airbags
  : Adds 2 rear side airbags

• Front four-piston fixed brake calipers
  : Delivers better braking performance
• 265mm wide rear tires
  : Improves grip and driving stability
• Full standard equipment of V6s Plus Super Motor
  : Delivers stronger power output and faster response
• Pro/Max versions come standard with dual-chamber air springs and CDC dampers
  : Intelligently adjusts suspension stiffness

• Full standard equipment of LiDAR and 4D millimeter-wave radar
• Computing platform computing power reaches 700TOPS
• Equipped with Xiaomi HAD End-to-End Large Model Assisted Driving System

• Standard version is equipped with 800V high-voltage platform; Max version is equipped with 897V high-voltage platform
• Ultra-long cruising range of 902km
• Significantly improved charging efficiency

• Seat ventilation, heating, and massage functions
• Matte black interior and exquisite stitching design
• Smart dual instrument panel and other configurations

: The pre-sale starting price of the all-new SU7 is RMB 229,900, an increase of RMB 14,000 compared to the old model [2].

---

According to market data [3], the Xiaomi SU7 has shown strong growth since deliveries began in April 2024:

Time Node	Monthly Sales	Market Ranking	Key Milestones
May 2024	8,400 units	New Launch	First Month of Deliveries
December 2024	23,000 units	Top 5	Annual Sales Exceed 100,000 Units
May 2025	28,013 units	Top 3	Continuous Growth
June 2025	23,225 units	6th	91.3% Year-on-Year Growth
December 2025	50,000+ units	Top 3	Monthly Sales Exceed 50,000 Units

[4].

As of December 2025, Xiaomi Auto holds a market share of approximately

in China’s new energy passenger vehicle market and has firmly ranked among the top 10 [5]. Notable points include:

• 3rd in Global Market Capitalization Ranking
  : Xiaomi Group surpassed BYD (USD 130.23 billion) with a market capitalization of USD 131.49 billion, ranking among the top three global automakers by market capitalization [6]
• Sales Champion of Pure Electric Sedans Priced Above RMB 200,000
  : The SU7 has ranked first in sales in the pure electric sedan market priced above RMB 200,000 for consecutive months [2]
• 500,000th Unit Off the Production Line
  : Achieved on November 20, 2025, setting a new industry speed record in just 19 months [7]

---

According to Xiaomi Group’s Q3 2025 financial report [8]:

Indicator	Q3 2025 Data	Year-on-Year Change
Automotive Business Revenue	RMB 28.3 Billion	199.2% Year-on-Year Growth
Automotive Business Operating Income	RMB 700 Million	First Quarterly Profit
Gross Profit Margin	25.5%	At a Good Level in the Industry
Automotive Business Revenue as a Percentage of Total Revenue	25.6%	Record High
Quarterly Deliveries	108,800 Units	Month-on-Month Growth
Profit per Unit	Approx. RMB 7,000/Unit	Calculated Figure

:

1. Emergence of Scale Effects
   : With increased production volume, advantages in component procurement and production cost control become prominent
2. Optimized Product Structure
   : The launch of SU7 Ultra and YU7 increased the average unit price to RMB 260,000 [8]
3. Gross Profit Margin Improvement
   : The 25.5% gross profit margin outperforms most new energy vehicle startups
4. Increased Capacity Utilization
   : Production capacity at the Beijing Smart Factory continues to ramp up

---

The upgrade of the new-generation SU7 has enabled it to form three major advantages in the core market of RMB 200,000-300,000 [2]:

Competitive Advantage	Specific Performance	Comparison with Competitors
Configuration Cost-Effectiveness	Full standard equipment of LiDAR, high-voltage platform, and multiple airbags	Surpasses peer competitors
Three-Electric Technology	897V high-voltage platform, 902km cruising range	Leads mainstream pure electric platforms
Ecosystem Synergy	HyperOS “Human-Vehicle-Home Full Ecosystem” connectivity	Xiaomi’s unique advantage

This price increase of RMB 10,000-14,000 is a

strategy, not a simple cost pass-through. The price increase is reasonable considering the following factors:

• Comprehensive upgrades to core configurations have led to significant cost increases
• Continues the “performance-focused” product positioning and avoids price wars
• Some configurations of the current SU7 have shown “sold out”, indicating strong market demand
• Provides limited-time upgrade options for users who have already locked in orders [2]

Despite the significant improvement in product strength, Xiaomi Auto still faces the following challenges:

Risk Type	Specific Content	Impact Assessment
Intensified Competition	Tesla’s affordable models and new products from Huawei Smart Selection will be launched	Increased pressure
Price Sensitivity	The price increase may affect some consumers’ decisions	Need to observe market feedback
Production Capacity Bottlenecks	Long delivery cycles may lead to order losses	Need continuous optimization
Technological Iteration	Rapid evolution of intelligent driving technology	Need continuous investment

---

:

• The new SU7 is expected to launch in April; based on historical data, monthly sales are expected to exceed 30,000 units
• Market share is expected to rise to the
  5-6%
  range
• Market share in the pure electric sedan market priced at RMB 200,000-300,000 is expected to exceed
  15%

:

• After YU7 sales stabilize and ramp up, the product matrix effect will emerge
• Xiaomi Auto’s annual delivery target is 550,000 units [6], and market share is expected to reach
  6-7%

:

• The average unit price of the automotive business will increase by approximately 5-10% (due to configuration upgrades)
• Automotive business revenue is expected to reach
  RMB 120-140 Billion
  in 2026

:

• Scale effects will further dilute fixed costs
• Supply chain bargaining power continues to strengthen

:

• The gross profit margin of the automotive business is expected to remain at
  24-26%
  in 2026
• Full-year operating income of the automotive business is expected to reach
  RMB 4-5 Billion
• Profit per unit is expected to increase to
  RMB 8,000-10,000

---

Dimension	Assessment	Rating
Growth	Automotive business revenue grew 199.2% YoY, with rapid growth	★★★★★
Profitability	Achieved first quarterly profit; 25.5% gross profit margin outperforms the industry	★★★★☆
Market Position	3rd in global market capitalization, with continuous market share growth	★★★★★
Product Strength	Competitiveness significantly enhanced after upgrade	★★★★★
Valuation Level	PE ratio of 22x (2025E), lower than historical average	★★★★☆

1. Persistent Industry Price Wars
   : May compress profit margins
2. Technical Route Risks
   : Intelligent driving technology evolves rapidly, requiring continuous R&D investment
3. Supply Chain Risks
   : Fluctuations in supply of core components such as chips and batteries
4. Policy Risks
   : Changes in new energy vehicle subsidy policies

---

1. Positive Effects of Product Upgrades
   : The new-generation SU7 has achieved all-round upgrades in safety, intelligent driving, cruising range, and driving control, significantly enhancing product competitiveness
2. Market Share Expected to Rise
   : With the “standard equipment is fully equipped” strategy and ecosystem advantages, market share is expected to increase from 4.2% to 6-7%
3. Profitability to Continue Improving
   : Scale effects and optimized product structure will drive an increase in profit per unit; the automotive business’s operating income is expected to reach RMB 4-5 billion in 2026
4. Long-Term Value Highlighted
   : Xiaomi’s “Human-Vehicle-Home Full Ecosystem” strategy continues to deepen, and ecosystem premium capability has become the core support for valuation

• Maintain “Overweight” Rating
  : Xiaomi’s automotive business has entered a cycle of profitability and new product launches, and is expected to see a strong product cycle in 2026
• Focus on Catalysts
  : YU7 sales performance, market feedback after the launch of the new SU7, and technological breakthroughs in intelligentization

---

[1] All-New SU7 Fully Upgraded, Standard with 900V + LiDAR

[2] Analysis of the New-Generation Xiaomi SU7 Product Upgrade

[3] New Vehicle Sales in China by Brand

[4] Xiaomi Auto’s Monthly Deliveries Steadily Exceed 40,000 Units, 500,000 Units in 19 Months Sets New Industry Speed Record

[5] 2025 China Whole Vehicle Industry Research Report

[6] Global Automaker Market Capitalization Shakeup: Xiaomi Firmly Ranks Third

[7] Xiaomi Group Releases Q3 2025 Financial Report

[8] Xiaomi’s Automotive Business Starts to Make Profits

[9] 2026: The Logic of Selling Cars Hasn’t Changed, But It’s Getting Harder