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A Xiaomi unit has won a tender for a plot of land near its existing car factory in Beijing, which it plans to use for its smart connected car and components project. The Beijing Municipal Planning and Natural Resources Commission announced the 50-year lease, valued at 635 million yuan (approximately $88 million).
The newly acquired plot is located close to the second phase of Xiaomi’s EV factory. In July 2024, Xiaomi Jingxi Technology secured a 531,130 square meter plot for the second phase at a price of 842 million yuan, with the project reaching its final stage in April this year.
This expansion comes at a time when most automakers in China are facing overcapacity challenges, yet Xiaomi has received approval to increase its production capacity.
Xiaomi reports that its newly announced YU7 SUV is attracting more demand than its SU7 sedan. Customers are currently facing a wait time of up to 51 weeks to receive their vehicles as the company accelerates production.
Xiaomi, which launched the SU7 sedan last year, has been consistently outselling Tesla’s Model 3 in China since December. The SU7’s success has significantly boosted Xiaomi’s ambitions in the EV sector.
The company has raised its EV delivery target for this year from 300,000 units to 350,000 units. Xiaomi’s EV factory, planned in two phases, is expected to achieve an annual production capacity of 300,000 units.
Bookings for the YU7 SUV will begin by the end of June, with the official launch expected in July, according to Xiaomi CEO Lei Jun.
