Xiaomi Auto is taking a bold step in its global electric vehicle (EV) expansion by partnering with Hyperion Leasing (Tianjin), a subsidiary of the state-owned Sinomach, to export its EVs.
This strategic move signals a shift from Xiaomi’s initial plan of focusing solely on the domestic Chinese market. By leveraging Sinomach’s extensive global network, Xiaomi aims to establish a strong presence in key international markets.
Strategic Alliance for Global Expansion
Sinomach, a multinational conglomerate operating in over 170 countries, announced its collaboration with Xiaomi Auto on February 10. While specific target markets remain undisclosed, this partnership highlights Xiaomi’s intent to fast-track its international presence.
By working with Hyperion Leasing, Xiaomi can tap into an established network of international trade and logistics, bypassing the complexities of setting up its own export infrastructure.
Leveraging the Success of the SU7
Xiaomi’s flagship EV, the SU7 sedan, has been a resounding success in China, with cumulative sales approaching 140,000 units. However, surging demand has led to extended waiting periods of up to eight months.
The upcoming F2 manufacturing plant, which will also produce Xiaomi’s next model, the YU7 electric crossover, is expected to ease these production bottlenecks.
A Shift Toward Profitability
Xiaomi’s decision to expedite international sales marks a strategic shift from its earlier timeline, which aimed for overseas expansion closer to 2030. The company appears to be prioritizing profitability, as reports suggest that Xiaomi has been incurring losses on each EV sold in China.
Exporting to markets like Europe, where EV prices are typically higher, could improve Xiaomi’s profit margins, following in the footsteps of other Chinese automakers like BYD.
Hyperion’s Role and Potential Markets
Under this partnership, Hyperion Leasing is expected to handle the export, distribution, and technical support for Xiaomi’s EVs in international markets. Given Sinomach’s strong presence in Russia, where it already distributes other Chinese car brands, Xiaomi EVs could potentially enter the Russian market.
Although not officially confirmed, this aligns with ongoing parallel imports, as Russia already accounts for a notable share of unofficial Xiaomi SU7 sales.
Xiaomi SU7: A Competitive EV Contender
The Xiaomi SU7 is a full-size electric sedan offering cutting-edge technology, impressive range, and high performance. Available in both rear-wheel and all-wheel drive, the SU7 delivers up to 664 horsepower and a driving range of up to 830 km (CLTC).
With competitive pricing and premium features, the SU7 has the potential to disrupt global EV markets. Xiaomi’s partnership with Hyperion Leasing could be the key to unlocking that potential worldwide.