Xiaomi is entering Europe in 2027

Xiaomi's strategy for entering the European market is becoming increasingly clear.

In August this year, Xiaomi Group President Lu Weibing revealed that Xiaomi's electric vehicles plan to officially enter the European electric vehicle market by 2027. Now, more details are emerging.

Recently, Xiaomi Vice President Xu Fei disclosed the timeline and details of this strategy in an interview with CNBC. She confirmed that the company began on-site research in Europe in June this year to prepare for establishing a sales network and finding partners.

According to the plan, Xiaomi will first open showrooms in Europe to showcase its highly anticipated electric vehicles and smart ecosystem. Xu also stated that while local production is not the "first step," establishing factories in Europe is a necessary move in the long run to achieve its goal of becoming one of the top five automotive manufacturers globally.

Xiaomi's expansion plan in Europe will allow it to directly enter an increasingly competitive market. At that time, Xiaomi will not only face local European brands but will also engage in direct competition with Chinese peers like BYD and XPeng, which have already established a presence in the region.

Showrooms First, Local Production as Long-term Planning

Xiaomi's strategy for entering the European market will focus on user experience. According to Xu Fei, the company plans to replicate its showroom model from China in Europe, allowing potential customers to not only test drive the vehicles but also gain a deeper understanding of its complete product ecosystem, which spans from smartphones to home appliances.

"Users need to experience the car, not just test drive it... they also need to understand the entire ecosystem," she said.

Regarding the production layout issue that investors are highly concerned about, Xu clearly pointed out that establishing production facilities in Europe will not be Xiaomi's "first step" in its automotive business in the region, but it is part of the company's long-term strategy.

She explained, "The logic is simple. We want to become one of the top five players in the world within 15 to 20 years. If you want to do that, you definitely need to have your own factory here (in Europe), right?"

Using Existing Models, Cautious Layout in the European Market

In terms of product strategy, Xiaomi seems inclined to adopt market-validated models. Xu Fei stated that the company will not "design a brand new product" for the European market, but did not disclose which specific model will be introduced. Last year, Xiaomi entered the electric vehicle market with the SU7 sedan and the subsequent YU7 sports utility vehicle, and has since delivered over 300,000 vehicles.

In light of its Chinese competitors having already established a foothold in the European market, Xu defended Xiaomi's relatively "slower" pace. She emphasized that the company needs ample time to prepare to ensure that its products are "reliable enough" for European market users and meet "very high standards."

"When we enter the market, we are very focused. This is not just some random Chinese product coming to the European market," she added, "This is a product designed to provide the best user experience for European users."