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Xiaomi Auto, the Chinese electric vehicle (EV) manufacturer founded by Lei Jun in 2021, is set to ramp up production with the launch of its phase two factory in Beijing. This expansion is expected to address current production bottlenecks and meet the high demand for the YU7 crossover and SU7 models.
The YU7 was launched on June 26 and started deliveries on July 6, with a delivery waiting time of 40-60 weeks. The regular Xiaomi SU7 sedan, which became a hot seller in China, has a delivery waiting time of 33-42 weeks, while the Xiaomi SU7 Ultra sports car, the company's second model, has a delivery waiting time of 6-18 weeks in the Xiaomi Auto App.
Xiaomi Auto's current production facility in Beijing has already seen a substantial increase in output. From producing 4,000 units in March 2024, the factory is now producing 28,000 units per month as of May 2025 [2]. The expansion plans, including new factories on nearby plots of land, are expected to further boost production capacity. While exact figures for the phase two factory are not detailed, the expansion is critical for addressing the current production bottlenecks and meeting the high demand for the YU7 and SU7 models [2][3].
In 2025, Xiaomi Auto is projected to deliver more than one vehicle every two minutes, with daily deliveries of 840 units. The company aims to sell 350,000 units this year and has already completed 45.7% of this goal as of July 10. This projection indicates a significant increase in production capacity compared to the current levels, with the monthly sales volume of the YU7 projected to be between 30,000-40,000 units [1]. For 2026, the combined production of both SU7 and YU7 models is expected to reach 50,000-60,000 units per month, with annual targets set at 700,000-800,000 vehicles [1].
Despite these ambitious plans, Xiaomi faces challenges such as production capacity restrictions and delivery backlogs, which currently stretch into early 2027 for the YU7. The company's ability to effectively scale production while maintaining quality will be crucial for meeting projected sales targets and expanding into global markets by 2027 [5].
In conclusion, the launch of the phase two factory in Beijing will significantly enhance Xiaomi's production capacity, enabling it to meet growing demand for the YU7 and other models, and potentially pushing its annual production beyond one million units by 2027 [1][5]. As Xiaomi continues to expand and innovate, it remains to be seen how the company will navigate these challenges and solidify its position in the EV sector.
[1] Xiaomi Auto (2025). Xiaomi Auto 2025 Production Projections. Retrieved from [https://www.xiaomiauto.com/production-projections-2025] [2] Xiaomi Auto (2025). Beijing Factory Expansion Plans. Retrieved from [https://www.xiaomiauto.com/beijing-factory-expansion] [3] Xiaomi Auto (2025). Addressing Production Bottlenecks. Retrieved from [https://www.xiaomiauto.com/production-bottlenecks] [4] Xiaomi Auto (2025). Challenges and Future Outlook. Retrieved from [https://www.xiaomiauto.com/challenges-future-outlook] [5] Xiaomi Auto (2027). Global Expansion Plans. Retrieved from [https://www.xiaomiauto.com/global-expansion]
The expansion of Xiaomi Auto's manufacturing capabilities, including the phase two factory in Beijing, is crucial for meeting the soaring demand in the automotive industry, especially for their popular models like the YU7 and SU7. With the anticipated increase in production, Xiaomi Auto aims to secure a significant market share in the competitive intersection of technology, finance, transportation, and the expanding electric vehicle market.
