Chinese technology powerhouse Xiaomi Corporation is set to mark another milestone in its electric vehicle journey with the planned completion of its manufacturing facility expansion by mid-2025, according to Chinese state-backed media reports released Wednesday.
The National Business Daily, citing an insider familiar with the project, reported that the second phase of the Xiaomi Intelligent Manufacturing Industrial Base is targeted for completion on June 15, 2025. The expansion project is currently under accelerated construction, with workers putting in overtime hours to meet the ambitious deadline.
The new facility will be strategically located adjacent to Xiaomi’s first-phase factory in Beijing’s Yizhuang New Town, an emerging hub for high-technology enterprises. This economic development zone has become increasingly attractive to innovative companies, establishing itself as a crucial centre for technological advancement in the region.
This expansion represents a significant step in Xiaomi’s automotive strategy, which began in 2021 when the company announced its bold move into the electric vehicle sector. The decision marked a strategic diversification from its core smartphone business, where Xiaomi has long been a dominant player in the global market.
The company’s entry into the automotive sector has already shown promising results. Since launching its first electric vehicle, the SU7 sedan, in December 2023, Xiaomi has demonstrated remarkable market penetration. The company reported impressive sales figures, with 70,000 units of the SU7 delivered between March and September 2024, establishing itself as a significant player in China’s competitive EV market.
The rapid success of the SU7 and the acceleration of the factory expansion plans underscore Xiaomi’s commitment to establishing a strong presence in the electric vehicle industry. The company’s ability to leverage its technology expertise and brand recognition has seemingly translated well into the automotive sector, despite initial scepticism from some market observers about a smartphone manufacturer’s ability to compete in the car market.
When contacted about the construction timeline report, Xiaomi did not provide immediate comment. However, the company’s continued investment in manufacturing infrastructure suggests confidence in its automotive strategy and future market prospects.
This development comes at a time when China’s electric vehicle market continues to grow rapidly, with domestic manufacturers increasingly challenging traditional automotive giants. Xiaomi’s expansion plans indicate its intention to capture a larger share of this burgeoning market, potentially setting the stage for increased production capacity and new model introductions in the coming years.