XIAOMI(HK:01810) Ge Long Hui·2025-06-11 02:18Core Viewpoint - The competition between Xiaomi and Huawei has intensified as both companies enter the automotive market, with Xiaomi rapidly gaining market share and challenging Huawei's position in the industry [2][4]. Group 1: Market Position and Valuation - Xiaomi's market capitalization surged from under 500 billion to over 1 trillion, reaching a peak of nearly 1.5 trillion, and currently stands at 1.26 trillion as of June 5 [2]. - Huawei's automotive division, backed by its "Five Realms" partners, has a combined market capitalization exceeding 500 billion, but still lags behind Xiaomi's valuation [4]. Group 2: Sales Performance - In March and April, Xiaomi's vehicle deliveries exceeded 29,000 and 28,000 units, respectively, while Huawei's deliveries were 27,555 units in April, indicating Xiaomi's dominance in sales despite having fewer models [16][21]. - In May, Huawei's automotive division achieved a monthly delivery of 44,454 units, marking a significant recovery and placing it among the top three new energy vehicle manufacturers [20]. Group 3: Competitive Dynamics - Huawei's executive Yu Chengdong criticized Xiaomi's automotive quality and performance, suggesting that despite high sales, the product may not meet quality standards [6][8]. - Xiaomi's leadership responded by emphasizing their product strength and market strategy, asserting that their success is rooted in their brand values and methodologies [11][15]. Group 4: Future Outlook - The competition is expected to escalate with the upcoming launch of Xiaomi's YU7, which is anticipated to further intensify the rivalry between the two companies [21][23]. - The outcome of this competition will likely influence market dynamics and the positioning of both companies in the automotive sector, reflecting broader trends in technology and consumer demand [23].