• Goldman Sachs raises Xiaomi EV sales forecast to 350,000 units in 2025 and 655,000 units in 2026, citing improved demand and production outlook
• Xiaomi SU7 and SU7 Ultra launched, while SUV YU7 will be launched in mid-2025, Xiaomi targets 300,000 EV deliveries in 2025
• Goldman Sachs predicts Xiaomi EV business could start profiting in 2026

Goldman Sachs has raised its forecast for Xiaomi’s electric vehicle (EV) sales to 350,000 units in 2025 and 655,000 units in 2026, up from 290,000 and 480,000 units, respectively.

Goldman Sachs is one of the world’s leading financial institutions with a long-standing reputation and credibility. Founded in 1869, it provides a wide range of financial services to clients around the world.

Therefore, when Goldman Sachs raised its forecast for Xiaomi’s electric vehicle sales, it was something to watch out for, reflecting a positive outlook for Xiaomi’s future in the electric vehicle market.

Goldman Sachs has raised its estimate for Xiaomi’s electric vehicle (EV) sales, citing more favorable demand and production capacity trends.

Read News : Xiaomi SU7 sales surpass Tesla Model 3 in China, reaching 25,815 units, indicating Elon Musk needs to adapt

Timothy Zhao’s team of analysts raised its estimate for Xiaomi’s EV sales to 350,000 units in 2025 from 290,000 units, which is ‘21%’ higher than the current consensus estimate, according to a research note sent to investors yesterday.

They also raised their estimate for Xiaomi’s EV sales in 2026 from 480,000 units to 655,000 units, which is ‘48%’ higher than the current consensus estimate.

The team currently values ​​Xiaomi’s EV business at 272 billion yuan ($37 billion), implying a 12-month forward price-to-sales ratio of 1.7 times, higher than the average of 1.0 times for competitors like Li Auto, Xpeng and Nio.

Goldman Sachs believes that Xiaomi’s “hero product” strategy, with a product lineup starting with the Xiaomi SU7 and expanding to larger markets, will lead to long-term growth and profitability.

Xiaomi’s non-IFRS operating loss from its smart EV business is expected to narrow from RMB6.8 billion in 2024 to less than RMB4 billion in 2025, and may turn profitable in 2026.

Xiaomi is also expected to invest RMB13 billion in R&D of EVs and other new projects in 2025, an increase of RMB3.3 billion from 2024.

Xiaomi officially launched its first electric car, the SU7, on March 28, 2024, with deliveries starting in April. The sedan is available in three trims: Standard, Pro, and Max, with prices starting at 215,900 yuan, 245,900 yuan, and 299,900 yuan.

On October 29, the company announced that the more powerful SU7 Ultra had started accepting pre-orders in China for 814,900 yuan, nearly four times the regular SU7’s 215,900 yuan starting price. The SU7 Ultra is set to officially launch in March 2025.

On December 9, Xiaomi announced that its second electric car will be called the YU7, and the new SUV is expected to be launched in June or July 2025.

On December 31, Xiaomi founder, chairman and CEO Lei Jun said in a live video that the company had delivered more than 135,000 vehicles in 2024, with a goal of delivering 300,000 by 2025.

In late November 2021, Xiaomi signed an agreement with an agency in Yizhuang, Beijing, to build a 300,000-unit-per-year vehicle factory there. The factory will have two phases, with the first and second phases having an annual production capacity of 150,000 vehicles, according to the announcement at the time.

On October 24, local media outlet National Business Daily reported that the second phase of Xiaomi’s electric car factory is expected to be completed by June.

Source : CNEVPOST