Xiaomi expects 5%-10% margin on SU7 with 100k unit sales

Lei Jun, CEO of Xiaomi, shared that the gross profit margin of the Xiaomi SU7 is approximately 5% to 10% with good support from its suppliers, at Xiaomi’s 2024 Investor Day on April 23 in China. Lei Jun further added that the specific margin figures need to be confirmed again since the sales volume is much higher than expected.

So far, as of April 20, Xiaomi SU7’s firm order volume has exceeded 70,000 units. The delivery target this year is 100,000 units. At first, Lei Jun’s personal goal was to sell 10,000 units per month and the original target was to deliver 72,000 units for the whole year. According to the Xiaomi Auto app, the current delivery cycle for the SU7 is 29 – 32 weeks, the SU7 Pro is 28 – 31 weeks, and the SU7 Max is 32 – 35 weeks.

Most recently, during the week of April 8th to April 14th, Xiaomi delivered 2,394 SU7s. According to vehicle insurance data, Beijing ranked first with 415 Xiaomi SU7s insured, followed by Hangzhou (166 units insured), Shanghai, Shenzhen, and Guangzhou.

It is also worth pointing out that Xiaomi’s daily production capacity is expected to increase to more than 400 units, and the monthly output is expected to reach 12,000 units, according to a Chinese source.

Right now, the deposit for the firm order is 5,000 yuan (690 USD). Amidst the competitive market, many brands are willing to subsidize the 5,000 yuan to attract more orders. So far, Luxeed offers a 5,000 yuan subsidy when customers present their Xiaomi SU7 firm order confirmation. NIO also seemed to follow at some NIO stores in which as long as the customer placed a firm order for an NIO model, NIO would subsidize 5,000 yuan and the firm order deposit could be refunded as well.

Source: MyDrivers, Sina, 36kr, AutoHome