Lei Jun responds to “Xiaomi loses more than 60,000 yuan when selling a car”

On August 21, the topic of “Xiaomi loses more than 60,000 yuan for selling a car” became a hot search.

Lei Jun responded to “Xiaomi loses more than 60,000 yuan for selling a car”: It is still in the investment period, I hope you understand
That night, Lei Jun responded on his personal Weibo. Lei Jun said that making cars is hard, but success must be cool! Xiaomi Automobile is still in the investment period, I hope everyone understands.

Lei Jun responded to “Xiaomi loses more than 60,000 yuan for selling a car”: It is still in the investment period, I hope you understand
Previously, Xiaomi Group released its second quarter performance report for 2024, showing that the company achieved revenue of 88.89 billion yuan, a year-on-year increase of 32% and a month-on-month increase of 17.7%. The market estimated 86.85 billion yuan; the net profit in the second quarter was 5.1 billion yuan, and the market estimated 3.84 billion yuan.

In the financial report, Xiaomi disclosed the performance of its automotive business for the first time. The revenue of innovative businesses such as smart electric vehicles was 6.4 billion yuan, with a gross profit margin of 15.4%, of which smart electric vehicles had revenue of 6.2 billion yuan. It is worth mentioning that in the second quarter, the company’s innovative businesses such as smart electric vehicles had an adjusted net loss of 1.8 billion yuan. According to Qidian News, Xiaomi Auto’s loss per vehicle exceeds 60,000 yuan. The automotive business needs to share costs including factory construction, technology research and development, personnel costs, store construction, etc. in the early stage, and losses are normal.

Lu Weibing, partner and president of Xiaomi Group, said that there are two main reasons for the loss of the automotive business. First, the scale of Xiaomi Auto is still relatively small, and the automobile is a typical industry that requires economies of scale; second, the investment in Xiaomi Auto’s first car is very large, and it will take some time to digest the cost. In addition, Xiaomi SU7 is a pure electric sedan. Among all models, the cost of pure electric sedans is the highest because the battery is very expensive. I believe that with the continuous increase in scale in the future, the continuous tapping of production capacity and the improvement of delivery capacity, Xiaomi Auto’s losses will be further narrowed.