Xiaomi reported its smart electric vehicle and AI business achieved its first full-year operating profit in 2025, supported by rapid growth in vehicle deliveries and improved margins.
Revenue from the segment surged 223.8% year-on-year to 106.1 billion yuan ($15.4 billion), according to the company's latest earnings release. The unit recorded operating income of 900 million yuan for the year, marking its first annual profit.
Electric vehicle sales were the primary contributor, generating 103.3 billion yuan in revenue. The segment's gross margin rose to 24.3% in 2025, up 5.8 percentage points from the previous year, driven by a greater share of higher-margin models.
In the fourth quarter alone, the EV and AI segment posted revenue of 37.2 billion yuan and operating profit of 1.1 billion yuan, reflecting continued momentum toward profitability.
Xiaomi delivered 411,082 vehicles in 2025, an increase of 200.4% from a year earlier. The average selling price rose 7.1% to 251,171 yuan. Monthly deliveries peaked in December at 50,212 units, supported by strong demand for the Xiaomi YU7, which accounted for the majority of shipments during the month.
Deliveries of the Xiaomi SU7 declined during the period due to a product transition, as the company prepared to introduce an updated version of the model.
Looking ahead, Xiaomi has set a target of delivering 550,000 vehicles in 2026 as it continues to scale its automotive business following the recent launch of the new-generation SU7.