XIAOMI(HK:01810) Qian Zhan Wang·2026-02-02 04:16Core Viewpoint - Xiaomi's January 2026 vehicle delivery figures showed a decline of over 20% compared to December 2025, raising concerns that were addressed by CEO Lei Jun, who attributed the drop to seasonal factors and the discontinuation of the first-generation SU7 model [1][3][4]. Delivery Performance - In January 2026, Xiaomi delivered over 39,000 vehicles, a decrease from over 50,000 in December 2025, marking a significant drop [1][4]. - The overall market for new energy vehicles saw a retail decline of 52% in January 2026, with many brands experiencing drops of over 30%, while Xiaomi's 22% decline was notably lower than the industry average [4]. Market Context - The spike in December 2025 deliveries was influenced by the end of a tax exemption policy, leading to a surge in consumer purchases, which exaggerated the January decline [4][10]. - The automotive market in China is expected to slow down in 2026, with challenges such as reduced incentives and increased competition impacting growth [10]. Product Development - The first-generation SU7 has been discontinued to pave the way for the new generation SU7, which is set to launch soon, with pre-sales starting on January 7, 2026 [5]. - The new SU7 will feature significant upgrades, including standard laser radar and advanced computing capabilities, with a price range of 229,900 to 309,900 yuan [5]. Strategic Investments - Xiaomi has invested heavily in various sectors of the automotive industry, including autonomous driving and automotive semiconductors, to build a comprehensive ecosystem [5][7]. - The company has delivered over 500,000 vehicles since its inception in the automotive market, with a target of 550,000 deliveries for 2026 [9].