Xiaomi EV January Sales: Why the 22% Dip Isn’t a Crisis for This Chinese EV Challenger

Can Xiaomi Auto maintain its meteoric rise in China’s brutal EV arena? That’s the multi-billion dollar question Western investors and legacy automakers are asking after the tech giant revealed its January delivery figures. Reporting an official 39,000+ vehicles delivered, Xiaomi Auto confirmed a *stunning* 70.33% year-over-year (YoY) jump compared to January 2025’s 22,897 units. However, the headline that might catch Western eyes is the 22.33% sequential drop from December’s record 50,212 units. For those monitoring the escalating threat from Beijing, this figure warrants a deeper dive into Xiaomi EV January sales figures to understand the context.

As an expert Auto Market Insight Analyst, I see this monthly fluctuation not as a crack in the foundation, but as a predictable market correction that reveals significant underlying product strength.

The January Slowdown: Context Matters

The sequential decline is not unique to Xiaomi; global reports confirm a widespread January ‘wall’ for China’s New Energy Vehicle (NEV) startups, including major players like NIO and XPeng, who saw drops of 44% and 47% MoM, respectively. Xiaomi’s 22.33% drop was significantly milder, indicating strong market resilience.

Why the dip? Two primary, non-product-related factors were at play:

• Policy Shift Hangover: The expiration of the NEV purchase tax exemption at the end of 2025 pulled forward substantial consumer demand into December, creating an unsustainable sales rush.
• Logistical Lag: The approaching Chinese New Year holiday (Jan 28th) caused many manufacturers to slow production and shipments after January 20th, impacting final delivery numbers.

Crucially, Xiaomi’s ability to hold its ground better than its peers confirms that the brand remains a preferred choice, even amid external headwinds.

YU7: The New Delivery Juggernaut

The product mix is perhaps the most telling indicator of Xiaomi’s strategic direction and future success. The data clearly shows a tactical pivot:

• YU7 Dominance: The YU7 all-electric mid-to-large SUV was the primary driver of January deliveries. Its cumulative deliveries surpassed 150,000 units just six months after launch—more than double what the SU7 achieved in its first six months.
• SU7 Production Shift: The original SU7 sedan is currently undergoing a crucial model refresh, causing production resources to be temporarily skewed toward the YU7. The refreshed SU7, with pre-sales starting strong, is slated for an April launch.

This dynamic explains why the YU7, priced in the competitive 250,000 yuan bracket, is pulling the numbers while the SU7 is intentionally paused for an upgrade. For Western OEMs, this agility in pivoting production to the hot seller (the SUV segment) while simultaneously prepping a high-tech successor (the new SU7) is a masterclass in fast-cycle iteration.

Outlook and Capacity Targets

Xiaomi has set an ambitious full-year delivery target of 550,000 units for 2026. To meet this, the company has stabilized its Beijing plant capacity at over 40,000 units per month.

Key factors supporting this target include:

• The imminent April launch of the upgraded SU7, which features standard LiDAR and an 800-volt architecture.
• The confirmed strong demand for the YU7 SUV.
• Rapid expansion of its physical footprint, reaching 484 sales outlets across 139 cities by the end of January.

See our analysis on how Xiaomi’s pricing strategy undercuts established rivals.

Why This Matters to the West

Xiaomi is not just another startup; it’s a vertically integrated tech behemoth flexing its manufacturing muscles. Its successful delivery run, despite market friction, signals:

1. Sustained Demand: The brand’s pull isn’t purely hype; the YU7 is proving to be a formidable mass-market contender.
2. Competitive Pressure Intensifies: Following this data, several Chinese brands, including Xiaomi, immediately launched aggressive incentives in February, signaling a brutal price war that will put severe margin pressure on European and American manufacturers trying to gain a foothold in China.
3. A True Competitor: The refreshed SU7 launch in April, coming off a successful YU7 run, will test if Xiaomi can dominate both the sedan and SUV segments simultaneously, directly challenging players like Tesla, which has seen its Model 3 outsold by the SU7 in 2025.

Xiaomi’s resilience in January suggests that any Western investor expecting a swift correction in the Chinese EV market may be disappointed. The acceleration continues, albeit with planned tactical pauses.