Xiaomi: sales forecasts for its electric vehicles are spectacular for 2025 and 2026
It must be said that Xiaomi has never hidden its sales ambitions while the SU7 is a huge success. From now on, the Chinese firm is preparing the release of the YU7his second model of the three planned. Goldman Sachs shares its upward forecasts.
Great forecasts for the Xiaomi automotive division
According to Goldman Sachs, demand and production capacities will be very favorable in 2025. In a research note for investors, analyst Timothy Zhao anticipates 350,000 sales in 2025 compared to 290,000 for the previous estimate. This is a projection that exceeds the current market consensus of 21%.
But that's not all: in 2026, the investment bank predicts 650,000 sales compared to 480,000 in the previous estimate. Which exceeds consensus estimates by 48%.
Goldman Sachs assigns a valuation of 272 billion yuan, or $37 billion, for Xiaomi's electric vehicle division. This is a 12-month trailing price-to-sales ratio of 1.7x. The multiple is above the average of 1.0x among Chinese competitors like Li Auto, Xpeng and Nio.
For Goldman Sachs, Xiaomi has a bright future thanks to its flagship product, the SU7, whose objective is to reach broader markets. The Chinese firm's strategy would enable it to support long-term growth and profitability.
Goldman Sachs also anticipates a reduction in non-IFRS operating losses for Xiaomi's electric vehicle division, from 6.8 billion yuan in 2024 to 4 billion this year. The investment bank speaks of an inflection point towards profitability in 2026.
Xiaomi is banking on big investments
As for investment in research and development for Xiaomi's electric vehicles and other activities, we are talking about 13 billion yuan in 2025. The increase would therefore be 3.3 billion yuan compared to last year.
Last December 31, to end 2024 well, Xiaomi CEO and founder Lei Jun confirmed that the company delivered more than 135,000 electric vehicles in 2024. New goal: 300,000 sales in 2025!
Xiaomi, to achieve this objective, relies on its Yizhuang factory in Beijing. This is the result of an agreement signed in November 2021. The installation is designed in two phases with a capacity of 150,000 vehicles each and a second phase completed by 2025 according to the National Business Daily.
