XIAOMI(HK:01810) 3 6 Ke·2026-01-04 23:58Core Insights - Xiaomi's CEO Lei Jun openly addressed controversies during the New Year live stream, emphasizing transparency and accountability in marketing practices [1][4] - In 2025, Xiaomi's automotive division exceeded its delivery target, achieving 410,000 units against an initial goal of 300,000, showcasing strong market performance despite skepticism [3][4] - The company plans to invest 200 billion yuan (approximately 28.5 billion USD) over the next five years in R&D, focusing on core technologies and generative AI to enhance vehicle performance and user experience [5][9] Delivery and Sales Performance - Xiaomi's automotive division adjusted its delivery target from 300,000 to 350,000 units mid-year, ultimately delivering 410,000 units [3] - The Xiaomi SU7 was the best-selling car in the 200,000 yuan and above segment, while the newly launched YU7 contributed significantly with over 150,000 units delivered [3][4] - The Q3 financial report indicated that Xiaomi's smart electric vehicles and AI innovations achieved profitability for the first time in a single quarter [3] R&D Investment and Strategic Focus - The planned 200 billion yuan investment will average 40 billion yuan annually, targeting advancements in battery technology, electric drive, and smart driving [5][9] - Generative AI will be integrated into all business operations to enhance user interaction and overall smart experience [5][9] - The automotive industry is increasingly relying on AI for efficiency and competitiveness, with companies like Geely and Seres demonstrating significant improvements through AI integration [8][9] Upcoming Product Launches - Xiaomi plans to launch four new vehicles in 2026, including an updated SU7 and two range-extended SUVs, aiming to capture the high-end family market [13][19] - The new models are expected to enhance user experience with features like increased cabin space and advanced technology [16][19] - The introduction of these vehicles aligns with Xiaomi's strategy to leverage its ecosystem and supply chain advantages [21] Production Capacity and Market Strategy - Xiaomi's combined production capacity is projected to reach 300,000 units annually, with potential to increase to 450,000 units through double-shift operations [25] - The company is preparing to enter the competitive large SUV market, targeting established players like Li Auto and Aion [25][26] - Xiaomi's strategy emphasizes understanding consumer needs and delivering value, which is crucial for competing in the high-end market [21][25] Future Outlook - The next five years will be critical for Xiaomi as it aims to solidify its position in the domestic market while preparing for international expansion by 2027 [27][28] - The company's ability to meet its ambitious delivery targets will be essential for building brand reputation and product strength ahead of global market entry [27][28]