Xiaomi's Memory-Cost Squeeze Clouds a Record Month for Its EV Unit
Published on 10/08/2026 at 05:31 | Editorial boerse-global.de
Xiaomi's automotive arm is closing the book on its launch promotion. As of Wednesday, the special terms extended to first-time buyers of the company's newest vehicle series expire, with prices for selected equipment packages set to rise from Thursday. The shift marks the end of the brand's introductory sales window and the start of a genuine demand test under standard market conditions.
The timing looks favorable on paper. Xiaomi Auto delivered more than 40,000 vehicles during September, and the freshly introduced model line accounted for over 10,000 of those units in its very first month on sale. Chief executive Lei Jun had already alerted prospective buyers that the discounts would lapse on October 7.
A Margin Experiment in the World's Toughest EV Market
Moving to regular pricing is more than an administrative step. It is the clearest signal yet of whether Xiaomi's automotive business can stand on its own margins while battling entrenched rivals at home. How order intake evolves over the coming weeks should prove decisive for the segment's profitability — and, by extension, for the group's earnings trajectory.
The company is simultaneously refreshing its consumer-electronics lineup, unveiling new tablets, wearables and connected home appliances. The presentation, which began on September 23 according to the Xinhua news agency, also came with the release of the open-source MiMo-V2.6 model series. The logic is straightforward: tie users of phones and smart-home gear to the same platform, then convert that loyalty into vehicle purchases. That cross-selling architecture underpins Xiaomi's ambition to defend share across several industries at once.
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Memory Prices Take a Bite Out of Smartphones
Less encouraging is the picture in handsets. HSBC initiated coverage of Xiaomi roughly a week ago with a buy recommendation and a price target of 33.20 HKD, pointing to sharply higher memory costs that will define 2026 as a transition year. Those expenses weigh on profitability and curb smartphone shipments before a broader market recovery is expected in 2027.
According to HSBC estimates reported by Dow Jones, the smartphone division faces a 10% revenue decline this year. The bank models a 27% drop in unit volumes, offset by a 24% rise in average selling prices. A more intensive product cycle in the fourth quarter is expected to help the company pass higher component costs through to buyers.
Hong Kong Tech Under Pressure
Market sentiment has not been kind. Xiaomi shares fell 1.4% in Hong Kong trading on the same day the Hang Seng Tech Index slipped 0.67%. In Germany, the stock closed Wednesday at EUR 2.73. The weakness extends a rough stretch: on Friday, October 2, the shares lost 4% in Hong Kong, with media reports citing heightened risk aversion after 10-year US Treasury yields hit a 20-year high, alongside elevated oil prices. Year to date, the stock is down 37%.
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The automotive build-out has not been enough to fully offset that headwind. For now, Xiaomi faces a two-front examination — its legacy electronics business must keep generating dependable revenue, while future margins hinge largely on whether the vehicle unit can sustain its delivery pace once the first-buyer incentives are gone.
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