Latest news with #Geely
Yahoo
11 hours ago
- Automotive
- Yahoo
Exclusive-China EV brands Zeekr, Neta inflated car sales using insurance scheme
(Reuters) -Chinese electric vehicle brands Neta and Zeekr inflated sales in recent years to hit aggressive targets, with Neta doing so for more than 60,000 cars, according to documents reviewed by Reuters and interviews with dealers and buyers. The companies arranged for cars to be insured before they were sold to buyers, the documents show, enabling them under Chinese industry car registration practices to book sales early so they could hit the monthly and quarterly targets, the dealers and buyers said. Neta booked early sales of at least 64,719 cars through this method from January 2023 to March 2024, according to copies of records it sent to dealers, seen by Reuters. That was more than half the sales of 117,000 vehicles it reported over the 15 months. Zeekr, a premium EV brand owned by Geely, used the same method to book early sales in late 2024 in the southern city of Xiamen through its main dealer there, state-owned Xiamen C&D Automobile, according to dealers, buyers and sales receipts seen by Reuters. Vehicles booked as sold before reaching a buyer are called "zero-mileage used cars" in the Chinese auto industry. The practice has emerged out of cutthroat competition for sales in the world's largest auto market, which is reeling from a brutal, years-long price war caused by chronic overcapacity. The industry faces a moment of reckoning, with state media calling out the zero-mileage car practice, the cabinet pledging to regulate "irrational" competition, and other central government bodies organising meetings with the industry's largest players to express concern about such methods. On Saturday a publication run by the China Association of Auto Manufacturers said the industry ministry was planning to clamp down on the practice by banning cars from being resold within six months of being registered as a sale. STATE MEDIA FOCUS Also on Saturday, state media reported that Zeekr had been selling cars with insurance already purchased to inflate sales, the first such naming and shaming of a specific automaker. In a front-page story, the China Securities Journal newspaper interviewed Zeekr car buyers in cities such as Guangzhou and Chongqing, who the newspaper said had found that their cars already had insurance policies before they were sold. They said they were refused refunds, even though they felt they were deceived. The newspaper questioned Zeekr's unusually high sales in the cities of Shenzhen and Xiamen in December. Its reported sales in Xiamen surged to 2,737 that month, more than 14 times its monthly average. Reuters could not determine how much of that volume might have been booked early. The China Securities Journal also raised questions over Neta's sales, saying it showed anomalies. Reuters is reporting for the first time details of how Neta inflated sales. Zeekr, Zhejiang Hozon New Energy Automobile, which owns Neta, and Xiamen C&D did not respond to requests for comment on Saturday. A spokesperson for Geely said, "Geely firmly rejects the report put forward by the China Securities Journal." The spokesperson declined to comment on Reuters findings or provide further details. Li Yanwei, an analyst with the China Automobile Dealers Association, said he believed the firms carried out such practices to embellish their financial reports and achieve their performance goals. "This way of whitewashing performance is not advisable," he wrote on Chinese social media platform Weibo on Saturday. Analysts and investors tracking China's auto industry gauge performance and estimate inventory levels with two sets of sales data. Wholesale numbers reported by automakers to the industry association show sales from automakers to dealers, while retail data compiled from insurance registration records show the sales to users. Some zero-mileage used cars are exported to be sold as second-hand cars overseas, but analysts and dealers say the domestic sales volume is significantly higher, with Chinese customers nationwide buying what they believe to be discounted new vehicles, only to find out later their car is not insured under their name. PRESSURE ON DEALERS Last month the state-owned People's Daily, the mouthpiece of China's ruling Communist Party, published an editorial condemning the sale of zero-mileage used cars domestically and listing a litany of harms the practice brings upon the industry and buyers. This month four dealer associations based in the wealthy Yangtze River Delta urged automakers to set them more reasonable sales targets and incentive policies, saying, without providing details, that dealers were being forced to falsify sales. Neta booked sales early by arranging insurance policies for cars before sending them to dealers, according to records shared with Reuters and a dealer for the brand. The records contain details for each car and the insurance policies purchased on them, with the names of the insurance agents. Dealers were able to refer to these when they found a buyer to transfer the policy to, according to copies seen by Reuters. The company booked early sales of 64,719 cars this way. "In Neta's case, the company made it clear to dealers that the cars were insured ahead of time and therefore counted as sold," said the dealer, who spoke on condition of anonymity, citing fears of retaliation from the company. "We had to explain to buyers that the traffic insurance was complementary and remind them it would expire earlier and should be renewed on time," he said. But three Neta buyers, who asked not to be named, told Reuters the dealerships had not told them the policies had begun well before the purchase date, only finding out when the policies expired. The dealer said Neta started doing this in late 2022 to obtain EV subsidies that were set to end that year. Neta's sales peaked in 2022 when it was ranked as the eighth-largest maker of new EVs in China with sales of 152,000 vehicles. Sales fell last year to 87,948 vehicles, including 23,399 exported, and it sold 1,215 cars in the first quarter of 2025, according to data from the China Association of Automobile Manufacturers. The brand has been in financial trouble since late 2024, and its owner, Zhejiang Hozon New Energy Automobile, entered bankruptcy proceedings in China last month, according to state media. 'JUST DO IT' The Neta dealer said many of the zero-mileage used cars he received from the company remained in his warehouse, unsold. The company "only had one message: Just do it, everyone else is doing it". Zeekr, which is being privatised by Geely Auto, booked sales with the help of Xiamen C&D, which runs dealerships for Zeekr and other brands. Xiamen C&D insured and registered the vehicles under the names of two subsidiaries in December, allowing Zeekr to count the sales before year-end, according to four dealers and two buyers, as well as a receipt shared with Reuters. Zeekr dealers sold some of the cars in subsequent months to buyers in other cities such as Beijing and Chongqing, the sources said. "The Zeekr salesman said the car would be 3,000 yuan ($420) less than a car I would get from the store and I would also get a charging coupon worth 10,000 yuan," said a buyer in another southern city. He declined to be named, citing concerns of retaliation from the automaker. The China Securities Journal reported that most of the owners it spoke to said their cars were insured by Xiamen C&D and its affiliates. China Automobile Dealers Association data showed that 2,508 of the 2,737 sales Zeekr booked in Xiamen in December were sold to companies, while 257 went to individual buyers. But data published by Xiamen's vehicle administration bureau showed just 271 cars registered in December for license plates, which genuine buyers generally obtain once they receive their cars. Sign in to access your portfolio
Yahoo
11 hours ago
- Automotive
- Yahoo
Volvo Cars says turnaround plan on track despite Q2 losses
Geely-owned Volvo Cars has reported a significant loss for the second quarter (Q2) of 2025, with a group operating profit (EBIT) down by Skr10.0bn ($1.02bn) compared to Skr8.0bn in Q2 2024, reflecting ongoing challenges within the automotive industry. Despite this, the company said that its Skr18bn ($1.84bn) cost and cash turnaround plan is progressing as expected, with full effects anticipated in 2026. Q2 revenues fell to Skr93.5bn from Skr101.5bn reported in the same period of the previous year, and the EBIT margin dropped from 7.9% to -10.6%. The Q2 EBIT includes items affecting comparability of Skr12.9bn, comprising an impairment of Skr11.4bn and a Skr1.4bn restructuring charge. Excluding these items, the EBIT was Skr2.9bn, with an EBIT margin of 3.1%. The impairment charge was attributed to the adjustment of 'financial assumptions for the EX90 and ES90 platform', import tariffs, and delays for the EX90. Additionally, a one-time restructuring cost of Skr1.4bn was linked to a decrease of 3,000 headcounts. Retail sales also experienced a decline, with 181,600 cars sold in Q2, a 12% decrease from the same period last year. The Skr18bn turnaround plan, introduced in early 2025, is already having an impact, with the reduction of 3,000 positions underway, and nearly 1,100 employees having left the company. Volvo Cars said that it is taking steps to minimise material expenses, including leveraging synergies within the Geely group and partnering on procurement. The company is also reducing working capital and investment pace, easing off investment volume, as major investments are being made in new product architecture. This will bring cost decreases and performance improvements, starting with the new Volvo EX60. Electrification remains a key focus of the company, with analysts predicting that 'demand for fully electric cars' will continue to grow, potentially outpacing traditional combustion engine cars by 2030. Volvo Cars noted that it will 'refresh' its plug-in hybrid (PHEV) offerings, starting with the all-new XC70 extended-range PHEV, set to launch in China in Q3. New governance models are being implemented by the company in China and the Americas, and the local assembly of the XC60 SUV in the US will help reduce the effects of import tariffs. Despite a challenging 2025, Volvo Cars is focusing on driving sales, including the EX30 and the 90 Series electric vehicles. The EX60 is also on track to strengthen the company's electric lineup. Volvo Cars CEO and president Håkan Samuelsson said: 'Demand remains under pressure from the macroeconomic environment, tariff-related uncertainties and tougher competition. 'However, our turnaround actions are starting to show results. In a Q2 market with headwinds we made a clear improvement of free cash flow versus Q1 and our EBIT margin excluding items affecting comparability was slightly higher.' "Volvo Cars says turnaround plan on track despite Q2 losses" was originally created and published by Just Auto, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Reuters
12 hours ago
- Automotive
- Reuters
Exclusive: China EV brands Zeekr, Neta inflated car sales using insurance scheme
July 19 (Reuters) - Chinese electric vehicle brands Neta and Zeekr inflated sales in recent years to hit aggressive targets, with Neta doing so for more than 60,000 cars, according to documents reviewed by Reuters and interviews with dealers and buyers. The companies arranged for cars to be insured before they were sold to buyers, the documents show, enabling them under Chinese industry car registration practices to book sales early so they could hit the monthly and quarterly targets, the dealers and buyers said. Neta booked early sales of at least 64,719 cars through this method from January 2023 to March 2024, according to copies of records it sent to dealers, seen by Reuters. That was more than half the sales of 117,000 vehicles it reported over the 15 months. Zeekr, a premium EV brand owned by Geely, used the same method to book early sales in late 2024 in the southern city of Xiamen through its main dealer there, state-owned Xiamen C&D Automobile, according to dealers, buyers and sales receipts seen by Reuters. Vehicles booked as sold before reaching a buyer are called "zero-mileage used cars" in the Chinese auto industry. The practice has emerged out of cutthroat competition for sales in the world's largest auto market, which is reeling from a brutal, years-long price war caused by chronic overcapacity. The industry faces a moment of reckoning, with state media calling out the zero-mileage car practice, the cabinet pledging to regulate "irrational" competition, and other central government bodies organising meetings with the industry's largest players to express concern about such methods. On Saturday a publication run by the China Association of Auto Manufacturers said the industry ministry was planning to clamp down on the practice by banning cars from being resold within six months of being registered as a sale. Also on Saturday, state media reported that Zeekr had been selling cars with insurance already purchased to inflate sales, the first such naming and shaming of a specific automaker. In a front-page story, the China Securities Journal newspaper interviewed Zeekr car buyers in cities such as Guangzhou and Chongqing, who the newspaper said had found that their cars already had insurance policies before they were sold. They said they were refused refunds, even though they felt they were deceived. The newspaper questioned Zeekr's unusually high sales in the cities of Shenzhen and Xiamen in December. Its reported sales in Xiamen surged to 2,737 that month, more than 14 times its monthly average. Reuters could not determine how much of that volume might have been booked early. The China Securities Journal also raised questions over Neta's sales, saying it showed anomalies. Reuters is reporting for the first time details of how Neta inflated sales. Zeekr, Zhejiang Hozon New Energy Automobile, which owns Neta, and Xiamen C&D did not respond to requests for comment on Saturday. A spokesperson for Geely said, "Geely firmly rejects the report put forward by the China Securities Journal." The spokesperson declined to comment on Reuters findings or provide further details. Li Yanwei, an analyst with the China Automobile Dealers Association, said he believed the firms carried out such practices to embellish their financial reports and achieve their performance goals. "This way of whitewashing performance is not advisable," he wrote on Chinese social media platform Weibo on Saturday. Analysts and investors tracking China's auto industry gauge performance and estimate inventory levels with two sets of sales data. Wholesale numbers reported by automakers to the industry association show sales from automakers to dealers, while retail data compiled from insurance registration records show the sales to users. Some zero-mileage used cars are exported to be sold as second-hand cars overseas, but analysts and dealers say the domestic sales volume is significantly higher, with Chinese customers nationwide buying what they believe to be discounted new vehicles, only to find out later their car is not insured under their name. Last month the state-owned People's Daily, the mouthpiece of China's ruling Communist Party, published an editorial condemning the sale of zero-mileage used cars domestically and listing a litany of harms the practice brings upon the industry and buyers. This month four dealer associations based in the wealthy Yangtze River Delta urged automakers to set them more reasonable sales targets and incentive policies, saying, without providing details, that dealers were being forced to falsify sales. Neta booked sales early by arranging insurance policies for cars before sending them to dealers, according to records shared with Reuters and a dealer for the brand. The records contain details for each car and the insurance policies purchased on them, with the names of the insurance agents. Dealers were able to refer to these when they found a buyer to transfer the policy to, according to copies seen by Reuters. The company booked early sales of 64,719 cars this way. "In Neta's case, the company made it clear to dealers that the cars were insured ahead of time and therefore counted as sold," said the dealer, who spoke on condition of anonymity, citing fears of retaliation from the company. "We had to explain to buyers that the traffic insurance was complementary and remind them it would expire earlier and should be renewed on time," he said. But three Neta buyers, who asked not to be named, told Reuters the dealerships had not told them the policies had begun well before the purchase date, only finding out when the policies expired. The dealer said Neta started doing this in late 2022 to obtain EV subsidies that were set to end that year. Neta's sales peaked in 2022 when it was ranked as the eighth-largest maker of new EVs in China with sales of 152,000 vehicles. Sales fell last year to 87,948 vehicles, including 23,399 exported, and it sold 1,215 cars in the first quarter of 2025, according to data from the China Association of Automobile Manufacturers. The brand has been in financial trouble since late 2024, and its owner, Zhejiang Hozon New Energy Automobile, entered bankruptcy proceedings in China last month, according to state media. The Neta dealer said many of the zero-mileage used cars he received from the company remained in his warehouse, unsold. The company "only had one message: Just do it, everyone else is doing it". Zeekr, which is being privatised by Geely Auto booked sales with the help of Xiamen C&D, which runs dealerships for Zeekr and other brands. Xiamen C&D insured and registered the vehicles under the names of two subsidiaries in December, allowing Zeekr to count the sales before year-end, according to four dealers and two buyers, as well as a receipt shared with Reuters. Zeekr dealers sold some of the cars in subsequent months to buyers in other cities such as Beijing and Chongqing, the sources said. "The Zeekr salesman said the car would be 3,000 yuan ($420) less than a car I would get from the store and I would also get a charging coupon worth 10,000 yuan," said a buyer in another southern city. He declined to be named, citing concerns of retaliation from the automaker. The China Securities Journal reported that most of the owners it spoke to said their cars were insured by Xiamen C&D and its affiliates. China Automobile Dealers Association data showed that 2,508 of the 2,737 sales Zeekr booked in Xiamen in December were sold to companies, while 257 went to individual buyers. But data published by Xiamen's vehicle administration bureau showed just 271 cars registered in December for license plates, which genuine buyers generally obtain once they receive their cars.
Yahoo
2 days ago
- Automotive
- Yahoo
Volvo Cars' XC60 to join US production lineup
Geely's Volvo Cars is set to bolster its US manufacturing operations by adding the XC60 mid-size SUV to its production line in the Ridgeville car plant, South Carolina, US. The facility, which currently assembles the fully electric EX90, is expected to commence XC60 production in late 2026. After the Trump administration introduced additional tariffs on automotive imports earlier this year, several OEMs are reassessing their manufacturing strategies and considering making more US-market bound vehicles at available US plants rather than importing them. Switch Auto Insurance and Save Today! Affordable Auto Insurance, Customized for You The Insurance Savings You Expect Great Rates and Award-Winning Service In the first half of 2025, the XC60 saw a nearly 23% increase in US sales, underscoring its significance in the market. The model accounts for over one-third of Volvo Cars' US sales in the country this year, with a quarter of these being plug-in hybrids. Volvo Cars Americas president Luis Rezende said: 'The XC60 is already beloved around the world and in the US and we're proud we'll soon be able to offer American families the XC60 they love, assembled here by American autoworkers. 'The XC60 is the right car for this market. It offers the best of Volvo in a versatile size with the powertrain options to suit our US customers.' Volvo Cars' Ridgeville plant was established nearly a decade ago. With a $1.3bn investment over the past ten years, the plant has undergone extensive upgrades, including a renewed and expanded body and paint shop, as well as a new battery pack production line. The addition of the XC60 is expected to secure local employment. Volvo Cars CEO Håkan Samuelsson said: 'Adding the XC60 to our Charleston production line will further strengthen its position and attractiveness in the competitive US market, while supporting and creating American manufacturing jobs. 'It is also in line with our ambition to build where we sell and reinforces our long-term commitment to the US market, where we are celebrating our 70th anniversary and have sold over 5 million cars.' Volvo Cars noted that the Ridgeville facility will continue to produce the fully electric, seven-seater EX90 SUV, catering to those desiring more space or a complete shift to electric vehicles. Recently, Volvo Cars announced a one-off non-cash impairment charge of Skr11.4bn ($1.19bn) for the second quarter (Q2) of 2025, attributed to financial adjustments for its EX90 and ES90 platforms. "Volvo Cars' XC60 to join US production lineup" was originally created and published by Just Auto, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Sydney Morning Herald
2 days ago
- Automotive
- Sydney Morning Herald
The Chinese giant that has succeeded where Apple has failed
Lei and Xiaomi's 'charisma, brand recognition and ecosystem cannot be underestimated,' Yale Zhang, the managing director of Shanghai-based consultancy Automotive Foresight, said. 'It's a big influence on young consumers who have filled their homes with Xiaomi products. When it comes time to buy an EV, they naturally think of Xiaomi.' But building cars is a far more complex, capital-intensive challenge than making phones or rice cookers. It requires mastering safety regulations, global logistics and production at scale, all while competing against legacy automakers with long histories and large model line-ups. Any international expansion will also require navigating complex geopolitical landscapes. As one of the first tech giants to actually manufacture a car, Xiaomi is in uncharted territory. Apple's failings Apple's car project, internally dubbed Project Titan, failed in large part because it wasn't just an EV – it was at one point an attempt to leapfrog the auto industry with a fully autonomous, Level 5 self-driving machine. Its goals were lofty and the direction constantly shifting, the result being over a decade of effort with nothing to show. Lei, 55, was comparatively stingy with time and resources and staked his personal reputation on the endeavour, claiming that making cars would be his 'last entrepreneurial project'. Xiaomi's public narrative is that Lei and his team learnt by visiting multiple Chinese automakers, including Zhejiang Geely and Great Wall Motor, and talked to more than 200 industry experts in some 80 meetings. The reality is also that he used Xiaomi's reputation as an innovative consumer behemoth to get close to China's large carmakers and pick off their top talent. Geely and its billionaire founder Li Shufu welcomed Lei to the automaker's research institute in Ningbo in the months leading up to Xiaomi's announcement that it would enter the car business, to discuss topics including potential collaboration. It's Geely lore that Lei added the WeChat contacts of many staff at the institute, including then-director Hu Zhengnan. Hu later joined Shunwei Capital Partners, the investment firm co-founded by Lei. Xiaomi headhunters also courted Geely staff intensely, according to people familiar with the matter. While it's common for talent to move between companies in the same industry, it was unusual to see this level of aggressiveness around recruitment, the people said, asking not to be identified discussing information that is private. Geely didn't respond to a request for comment. Hu, known for his love of the German luxury marque Porsche, was one of the team members credited as being instrumental to developing Xiaomi's EV business, Lei said at the SU7 launch in 2024. Lei added that Hu left his previous employer after his contract ended. Other executives who joined Xiaomi came from companies including BAIC Motor, BMW, SAIC-GM-Wuling Automobile Co – the General Motors joint venture with SAIC Motor Corp and Wuling Motors Holdings Ltd – and auto supplier Magna Steyr LLC. Besides assembling top Chinese automaking talent, Lei made a prescient bet on investing in a self-controlled supply chain – insulating Xiaomi's operation from manufacturing vagaries. This came from painful lessons learnt in Xiaomi's early smartphone-producing days, when external suppliers would cut off components unpredictably. In 2016, some members of Xiaomi's supply chain team displeased Samsung representatives and the South Korean firm threatened to halt supply of its industry-leading AMOLED screens. To mend the fractured relationship, Lei flew to Shenzhen to meet with Samsung's China head at the time. The pair drank five bottles of red wine during their dinner meeting, according to a Xiaomi company biography, and Lei also made multiple trips to Samsung's headquarters in South Korea to apologise and negotiate the resumption of supply. Representatives from Samsung declined to comment. After Xiaomi went into the car making business, it invested into almost all parts of the EV supply chain, from batteries and chips to air suspension and sensors. It pumped more than $US1.6 billion via Shunwei or other Xiaomi-led funds into over 100 supply chain companies between 2021 and 2024, according to data compiled by Chinese analytics firm Zhangtongshe and Bloomberg. Loading The components from some of the companies that Xiaomi invested in have ended up in its cars, such as lidars from Hesai Technology Co. and onboard chargers and voltage converters from Zhejiang EV-Tech Co. With the 10 billion yuan ($2.1 billion) it committed to the first phase of its EV venture, Xiaomi also built its own factory, rather than going down the contract manufacturing route that some Chinese makers, including Nio and Xpeng, did when they started out. 'Among tech companies that now build electric vehicles, those who previously had hardware products seem to be more successful than those who only had software products or information services,' said Paul Gong, UBS Group AG's head of China autos research. Copycat allegations Despite its early success, there are many who argue Xiaomi's one-hit car is copied from elsewhere – and that a sole successful vehicle does not a successful auto producer make. Lei's aggressive approach has also raised hackles in China's car industry. Yu Jingmin, vice president of SAIC's passenger car division, reportedly described Xiaomi's approach as 'shameless' in a critique of the SU7 resembling Porsche. The SU7 has been colloquially dubbed 'Porsche Mi' by netizens. SAIC didn't respond to questions about Yu's remarks. Xiaomi's design team, led by former BMW designer Li Tianyuan, has defended the SU7's aesthetics, emphasising that the choices were driven by aerodynamic efficiency and performance benchmarks. In late March, there was another setback after a fatal accident involving the SU7. The car had its advanced driver assistance technology turned on before the crash, which afterwards led to authorities reining in the promotion and deployment of the technology. The usually vocal Lei kept a low profile on social media for more than a month after the March accident. He returned to more active engagement in May with a missive that said this period of time was the most difficult in his career. Fortunately for Xiaomi, its consumer base is sticky. Known as 'Mi fans,' the loyal customers have played a pivotal role in the company's rise. Xiaomi cultivated this fandom early on by prioritising user feedback, and the grassroots allegiance has helped it build strong brand equity, especially in China. The SU7 has remained a top-selling model even after the accident in March. Dealers have reported that nearly 50 per cent of customers plump for the SU7 without comparing it to other brands. 'A significant number of older consumers are buying the SU7 for their children, indicating that the model has built trust among more conservative buyers thanks to its safety and quality,' said Rosalie Chen, a senior analyst from investment research firm Third Bridge. Small scale Xiaomi has set a delivery target of 350,000 units in 2025, up from its previous goal of 300,000, buoyed by demand for the newly launched YU7 and a ramp-up in production. The starting prices for the SU7 sedan, at 215,900 yuan ($46,427), and its SUV, at 253,500 yuan, make them competitive alternatives to models such as Tesla's Model 3 and Model Y. The EVs are also showing financial promise. Xiaomi posted record revenue for the first quarter this year, driven by car and smartphone sales. Its EV division is expected to turn profitable in the second half of 2025, Lei said in an investor meeting in June. But even if the popularity of Xiaomi's EVs can spring beyond the company's devoted base, production is still on a much more boutique scale. China's top car brand, BYD, sold around 4.3 million EVs and hybrids last year, many overseas, while Tesla moved about 1.78 million vehicles globally. Toyota, the world's No. 1 automaker, sold some 10.8 million vehicles and boasts a line-up of approximately 70 different models. Lei doesn't seem to be prioritising the mass market of below $US20,000 yet, which drives significant volume and is where BYD dominates, Automotive Foresight's Zhang said. Without a line-up in that segment, Xiaomi cars will remain niche purchases for middle to higher-income consumers and Xiaomi may face the same risks as Tesla, which is seeing its sales slump, exacerbated by a narrow consumer base and limited models. Nonetheless, Lei seems buoyed by Xiaomi's early wins and is now looking at global expansion. Xiaomi will consider selling cars outside China from 2027, he said earlier this month.
