Chinese company Xiaomi has raised its electric car delivery target for this year and now plans to deliver more than 400,000 vehicles by the end of 2025, according to the company's website.
The company had previously planned to deliver 350,000 electric cars this year, but now intends to break that bar as early as this week, Bloomberg writes.
Xiaomi announced the increase in its delivery plan after its electric car business stopped losing money, Bloomberg notes. Xiaomi launched sales 19 months ago, in March last year, and went into profit in the segment at the end of the last quarter. The electric car and artificial intelligence division earned 700 million yuan ($98 million) in the period.
However, along with this, Xiaomi is facing difficulties in both the smartphone market and the electric car sector due to a global shortage of chips, Bloomberg notes. In addition, the gradual elimination of tax incentives for the purchase of electric cars in China is likely to weaken demand for them. Amid these uncertainties, Xiaomi shares have lost most of their growth since the beginning of the year, becoming the worst securities in the Chinese technology sector. They have gained 9% since the beginning of the year, while the Hong Kong stock exchange's Hang Seng Tech index has added about 25% over the same period.
To remedy the situation, the CEO said Xiaomi will speed up production, reduce waiting times for customers and increase R&D investment to develop new features - such as smarter artificial intelligence for driver assistance systems.
This article was AI-translated and verified by a human editor
