Lu Weibing: Xiaomi's automotive division will complete its annual delivery target ahead of schedule this week, and it is expected that the gross profit margin will decline next year. The mobile phone business may respond to rising storage costs by increasing prices

On November 18th, Xiaomi Corporation released its Q3 financial report for 2025. Xiaomi partner and Group President Lu Weibing revealed during the media earnings conference that Xiaomi's automotive division is expected to achieve its annual delivery target of 350,000 vehicles this week. The financial report shows that over 100,000 new Xiaomi vehicles were delivered in Q3, with cumulative deliveries exceeding 260,000 in the first three quarters.

Lu Weibing reiterated that Xiaomi will steadfastly invest heavily in underlying technology, with R&D spending "certainly" exceeding 30 billion this year, and expected to surpass 200 billion in the next five years.

Additionally, Lu Weibing mentioned that the Xiaomi 17 series (especially the Pro/Max versions) was the sales champion for domestic smartphones priced above 6,000 yuan during the Double Eleven shopping festival, and is the "only domestic model that can compete with the iPhone." The time taken to surpass sales of 1 million and 2 million units was much faster than the previous generation, indicating strong growth momentum.

He stated that in the 4,000-6,000 yuan price range, Xiaomi smartphones have basically established a foothold, with a market share of about 20%. The next focus is to conquer the "ultra-high-end" market priced above 6,000 yuan.

When discussing the gross profit outlook for Xiaomi automobiles, the company took a cautious stance.

Lu Weibing indicated that the automotive industry is expected to face significant challenges in 2026, with the purchase tax subsidy halved next year, leading to intensified competition in the automotive sector. Overall, it is likely that Xiaomi's automotive gross margin will decline next year. However, in the short term, it is expected that Q4 of this year will continue to maintain at a "good level."

During the media conference call, Xiaomi partner and President Lu Weibing responded to the issue of rising storage costs. He pointed out that the current increase in memory prices is a long-term trend, primarily driven by the surge in HBM demand due to AI, rather than traditional cyclical fluctuations in the smartphone and laptop industries. Regarding the smartphone business, in light of this industry trend, Lu Weibing revealed that Xiaomi has made early arrangements and signed supply agreements with partners for the entire year of 2026 to ensure that annual supply is not affected. Regarding the transmission of cost pressures, Lu Weibing admitted that there may be a partial digestion of the pressure from rising memory costs through product price increases