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The EV Battle in China: Xiaomi’s Astonishing Growth vs. Huawei’s Setbacks

China's electric vehicle (EV) market has long been a battleground for innovation, but the ongoing clash between two of its most formidable technology giants—Huawei and Xiaomi—has taken center stage. This evolving competition reflects not only the intense pressures of China's auto sector but also the strategic maneuvering of firms that once primarily dominated the smartphone industry. The Origins of the Rivalry: From Smartphones to Electric Vehicles Huawei and Xiaomi have spent years competing in the smartphone arena, each carving out substantial global market shares and cultivating robust consumer bases. Huawei's reputation as a premium smartphone maker was built on its HarmonyOS ecosystem and cutting-edge camera technology, while Xiaomi’s reputation hinged on affordability and user-centric features. The expansion of this rivalry into the EV market was, in many ways, a natural progression. As Chinese consumers grew increasingly interested in smart mobility solutions and environmentally conscious vehicles, both firms saw an opportunity to leverage their brand power and technological capabilities. Huawei's Entry via HIMA: Huawei entered the EV space through the Harmony Intelligent Mobility Alliance (HIMA), a collaborative initiative with established automakers. By positioning itself as a technology provider rather than a direct carmaker, Huawei sought to integrate its digital prowess—particularly in autonomous driving and connected vehicle systems—into partner vehicles. Xiaomi's Direct Approach: In contrast, Xiaomi committed to direct vehicle production, pouring billions of yuan into research and development, supply chains, and manufacturing facilities. Its inaugural EV, the SU7 sedan, signaled an ambitious leap from the world of phones and smart home devices to full-scale automotive engineering. Xiaomi's Meteoric Rise in the EV Space Xiaomi's EV journey began in earnest in late 2023, when it unveiled the SU7 electric sedan. Marketed as a direct rival to Tesla's Model 3, the SU7 emphasized performance, connectivity, and value. By the first quarter of 2025, Xiaomi had delivered 75,869 SU7 series vehicles, up 8.86% from the previous quarter. In May 2025 alone, Xiaomi reported delivering over 28,000 vehicles—marking the eighth consecutive month of surpassing 20,000 units. This consistency suggests not only strong consumer demand but also a refined production and logistics system. Table 1: Xiaomi EV Delivery Statistics (2024-2025) Model Launch Date Price Range (RMB) Key Feature Q1 2025 Deliveries SU7 Standard/Pro/Max March 28, 2024 215,900 - 299,900 Intelligent connectivity, assisted driving 75,869 SU7 Ultra March 2, 2025 529,900 1,548 PS horsepower, premium features Included in SU7 YU7 SUV July 2025 (planned) TBD Sport utility, family-focused design In pre-production Lei Jun, Xiaomi's founder and CEO, expressed optimism in June 2025 that Xiaomi's EV business could become profitable by the second half of the year. This confidence comes despite a reported loss of 500 million yuan ($69.4 million) for Xiaomi's EV unit in Q1 2025—a notable improvement from the previous quarter’s 700 million yuan loss. Huawei's Position: Strategic Partnerships and HIMA's Slowdown Huawei's strategy in the EV sector has been fundamentally different. Rather than manufacturing cars directly, Huawei formed the Harmony Intelligent Mobility Alliance, collaborating with automakers to incorporate its technologies into their vehicles. This approach leveraged Huawei's strengths in: In-car connectivity and smart ecosystems (via HarmonyOS) Advanced driver-assistance systems (ADAS) Autonomous driving solutions However, Huawei's position has been challenged by Xiaomi's aggressive EV push and the overall intensification of competition in China’s EV market. Reports suggest that Huawei's auto alliance is facing difficulties in maintaining momentum, with Xiaomi’s rapid sales surge narrowing the gap. Expert Insight: Key Factors Driving Xiaomi’s Success To understand why Xiaomi is outperforming Huawei in EV sales, industry experts have pointed to several factors: “Xiaomi’s decision to integrate its consumer electronics experience directly into EV manufacturing has been a game-changer. By positioning itself as a one-stop-shop for digital mobility, it has tapped into a young, tech-savvy customer base.” — Levi Li, Senior Technology Analyst, DIGITIMES Asia Other drivers of Xiaomi’s success include: Brand Loyalty: Xiaomi's history of producing high-quality yet affordable electronics has created a base of loyal consumers who trust the brand’s expansion into new segments. Agility in Production: Xiaomi has rapidly scaled up its EV manufacturing, establishing 298 stores across 82 Chinese cities by May 2025 and 153 service centers in 88 cities. Data-Driven Engineering: Leveraging its massive data resources and IoT ecosystems, Xiaomi has been able to optimize vehicle performance and user experience seamlessly. Navigating Safety and Reputational Challenges Despite these gains, Xiaomi's EV push has not been without setbacks. Earlier in 2025, an SU7 crash on an expressway in Anhui province, which killed three people while assisted driving software was engaged, drew intense scrutiny. Furthermore, some customers criticized design flaws and exaggerated marketing claims for the SU7 models. The Chinese state media’s recent warnings about "rat-race competition" further highlight concerns about oversaturation in the market, especially as leading player BYD slashed prices by as much as a third in May 2025. Analysts caution that such fierce price wars could damage long-term profitability and strain supplier relationships. Table 2: Key Challenges in China's EV Market (2025) Challenge Potential Impact Mitigation Strategies Intense price competition Shrinking margins, supplier pressure Focus on premium segments, differentiation Safety concerns and accidents Brand damage, regulatory scrutiny Improved ADAS and autonomous driving safety U.S. chip design restrictions Supply chain disruptions for Xiaomi and others Domestic R&D investment, alternative suppliers Huawei’s Response and Future Outlook Huawei’s recent efforts to revitalize its EV ecosystem have included expanded partnerships and updates to its HIMA platform. However, compared to Xiaomi’s direct vehicle sales, Huawei’s partnership-based approach faces limitations in controlling the full consumer experience. Richard Yu, CEO of Huawei Consumer BG, has emphasized that the company's goal remains providing the most advanced connected vehicle solutions to automakers, not necessarily building its own branded cars. Nevertheless, as Xiaomi strengthens its position in the premium EV market and expands into SUV production with the YU7, Huawei’s strategy may require a shift towards more direct consumer engagement. Key Insights for Industry Players For firms looking to navigate the turbulent waters of China’s EV market, several lessons can be drawn from the Huawei-Xiaomi rivalry: Vertical Integration Matters: Xiaomi’s decision to own every step of the EV lifecycle, from design to delivery, has proven crucial in its rapid scaling. Tech Ecosystem Leverage: Both firms showcase the importance of integrating broader digital ecosystems—Xiaomi’s with its Mi Home and smartphone platforms, Huawei’s via HarmonyOS. Balancing Speed and Safety: The SU7 crash underscores the critical need for robust autonomous systems and transparency in marketing advanced features. Conclusion and the Path Forward The Chinese EV market remains one of the most dynamic and contested in the world. Xiaomi's surge in deliveries, combined with Huawei's recalibration of its auto alliance, signals a new chapter in the nation's auto-tech revolution. As these two giants continue to innovate, one question persists: Will Huawei double down on direct EV sales, or will Xiaomi’s integrated approach redefine the entire sector? Read More & Expert Insights To explore the broader context of this rivalry and what it means for China’s tech and mobility future, turn to leading technology think tanks and credible resources: Caixin Global: Huawei’s EV Strategy Falters as Xiaomi Gains Ground in China DIGITIMES Asia: Xiaomi EV Rise Rattles Huawei, Reigniting China’s Top Tech Rivalry Fortune: Xiaomi CEO Lei Jun Predicts EV Profit CnEVPost: Xiaomi Delivers Over 28,000 Cars in May For additional analysis and future-oriented insights, consult the expert team at 1950.ai. Dr. Shahid Masood and his team at 1950.ai provide comprehensive coverage on the intersection of technology, mobility, and strategic decision-making. Further Reading / External References Huawei’s EV Strategy Falters as Xiaomi Gains Ground in China – Caixin Global Xiaomi CEO Lei Jun Predicts EV Profit – Fortune Xiaomi EV Rise Rattles Huawei – DIGITIMES Asia This article was crafted to provide a comprehensive, authoritative perspective on the shifting landscape of China's EV industry. For more in-depth insights and real-time analysis, follow Dr Shahid Masood and the expert team at 1950.ai.

China's electric vehicle (EV) market has long been a battleground for innovation, but the ongoing clash between two of its most formidable technology giants—Huawei and Xiaomi—has taken center stage. This evolving competition reflects not only the intense pressures of China's auto sector but also the strategic maneuvering of firms that once primarily dominated the smartphone industry.


The Origins of the Rivalry: From Smartphones to Electric Vehicles

Huawei and Xiaomi have spent years competing in the smartphone arena, each carving out substantial global market shares and cultivating robust consumer bases. Huawei's reputation as a premium smartphone maker was built on its HarmonyOS ecosystem and cutting-edge camera technology, while Xiaomi’s reputation hinged on affordability and user-centric features.


The expansion of this rivalry into the EV market was, in many ways, a natural progression. As Chinese consumers grew increasingly interested in smart mobility solutions and environmentally conscious vehicles, both firms saw an opportunity to leverage their brand power and technological capabilities.


  • Huawei's Entry via HIMA: Huawei entered the EV space through the Harmony Intelligent Mobility Alliance (HIMA), a collaborative initiative with established automakers. By positioning itself as a technology provider rather than a direct carmaker, Huawei sought to integrate its digital prowess—particularly in autonomous driving and connected vehicle systems—into partner vehicles.

  • Xiaomi's Direct Approach: In contrast, Xiaomi committed to direct vehicle production, pouring billions of yuan into research and development, supply chains, and manufacturing facilities. Its inaugural EV, the SU7 sedan, signaled an ambitious leap from the world of phones and smart home devices to full-scale automotive engineering.


Xiaomi's Meteoric Rise in the EV Space

Xiaomi's EV journey began in earnest in late 2023, when it unveiled the SU7 electric sedan. Marketed as a direct rival to Tesla's Model 3, the SU7 emphasized performance, connectivity, and value. By the first quarter of 2025, Xiaomi had delivered 75,869 SU7 series vehicles, up 8.86% from the previous quarter.


In May 2025 alone, Xiaomi reported delivering over 28,000 vehicles—marking the eighth consecutive month of surpassing 20,000 units. This consistency suggests not only strong consumer demand but also a refined production and logistics system.


Xiaomi EV Delivery Statistics (2024-2025)

Model

Launch Date

Price Range (RMB)

Key Feature

Q1 2025 Deliveries

SU7 Standard/Pro/Max

March 28, 2024

215,900 - 299,900

Intelligent connectivity, assisted driving

75,869

SU7 Ultra

March 2, 2025

529,900

1,548 PS horsepower, premium features

Included in SU7

YU7 SUV

July 2025 (planned)

TBD

Sport utility, family-focused design

In pre-production

Lei Jun, Xiaomi's founder and CEO, expressed optimism in June 2025 that Xiaomi's EV business could become profitable by the second half of the year. This confidence comes despite a reported loss of 500 million yuan ($69.4 million) for Xiaomi's EV unit in Q1 2025—a notable improvement from the previous quarter’s 700 million yuan loss.


Huawei's Position: Strategic Partnerships and HIMA's Slowdown

Huawei's strategy in the EV sector has been fundamentally different. Rather than manufacturing cars directly, Huawei formed the Harmony Intelligent Mobility Alliance, collaborating with automakers to incorporate its technologies into their vehicles. This approach leveraged Huawei's strengths in:

  • In-car connectivity and smart ecosystems (via HarmonyOS)

  • Advanced driver-assistance systems (ADAS)

  • Autonomous driving solutions

However, Huawei's position has been challenged by Xiaomi's aggressive EV push and the overall intensification of competition in China’s EV market. Reports suggest that Huawei's auto alliance is facing difficulties in maintaining momentum, with Xiaomi’s rapid sales surge narrowing the gap.


To understand why Xiaomi is outperforming Huawei in EV sales, industry experts have pointed to several factors:

“Xiaomi’s decision to integrate its consumer electronics experience directly into EV manufacturing has been a game-changer. By positioning itself as a one-stop-shop for digital mobility, it has tapped into a young, tech-savvy customer base.”— Levi Li, Senior Technology Analyst, DIGITIMES Asia

Other drivers of Xiaomi’s success include:

  • Brand Loyalty: Xiaomi's history of producing high-quality yet affordable electronics has created a base of loyal consumers who trust the brand’s expansion into new segments.

  • Agility in Production: Xiaomi has rapidly scaled up its EV manufacturing, establishing 298 stores across 82 Chinese cities by May 2025 and 153 service centers in 88 cities.

  • Data-Driven Engineering: Leveraging its massive data resources and IoT ecosystems, Xiaomi has been able to optimize vehicle performance and user experience seamlessly.


Navigating Safety and Reputational Challenges

Despite these gains, Xiaomi's EV push has not been without setbacks. Earlier in 2025, an SU7 crash on an expressway in Anhui province, which killed three people while assisted driving software was engaged, drew intense scrutiny. Furthermore, some customers criticized design flaws and exaggerated marketing claims for the SU7 models.

China's electric vehicle (EV) market has long been a battleground for innovation, but the ongoing clash between two of its most formidable technology giants—Huawei and Xiaomi—has taken center stage. This evolving competition reflects not only the intense pressures of China's auto sector but also the strategic maneuvering of firms that once primarily dominated the smartphone industry. The Origins of the Rivalry: From Smartphones to Electric Vehicles Huawei and Xiaomi have spent years competing in the smartphone arena, each carving out substantial global market shares and cultivating robust consumer bases. Huawei's reputation as a premium smartphone maker was built on its HarmonyOS ecosystem and cutting-edge camera technology, while Xiaomi’s reputation hinged on affordability and user-centric features. The expansion of this rivalry into the EV market was, in many ways, a natural progression. As Chinese consumers grew increasingly interested in smart mobility solutions and environmentally conscious vehicles, both firms saw an opportunity to leverage their brand power and technological capabilities. Huawei's Entry via HIMA: Huawei entered the EV space through the Harmony Intelligent Mobility Alliance (HIMA), a collaborative initiative with established automakers. By positioning itself as a technology provider rather than a direct carmaker, Huawei sought to integrate its digital prowess—particularly in autonomous driving and connected vehicle systems—into partner vehicles. Xiaomi's Direct Approach: In contrast, Xiaomi committed to direct vehicle production, pouring billions of yuan into research and development, supply chains, and manufacturing facilities. Its inaugural EV, the SU7 sedan, signaled an ambitious leap from the world of phones and smart home devices to full-scale automotive engineering. Xiaomi's Meteoric Rise in the EV Space Xiaomi's EV journey began in earnest in late 2023, when it unveiled the SU7 electric sedan. Marketed as a direct rival to Tesla's Model 3, the SU7 emphasized performance, connectivity, and value. By the first quarter of 2025, Xiaomi had delivered 75,869 SU7 series vehicles, up 8.86% from the previous quarter. In May 2025 alone, Xiaomi reported delivering over 28,000 vehicles—marking the eighth consecutive month of surpassing 20,000 units. This consistency suggests not only strong consumer demand but also a refined production and logistics system. Table 1: Xiaomi EV Delivery Statistics (2024-2025) Model Launch Date Price Range (RMB) Key Feature Q1 2025 Deliveries SU7 Standard/Pro/Max March 28, 2024 215,900 - 299,900 Intelligent connectivity, assisted driving 75,869 SU7 Ultra March 2, 2025 529,900 1,548 PS horsepower, premium features Included in SU7 YU7 SUV July 2025 (planned) TBD Sport utility, family-focused design In pre-production Lei Jun, Xiaomi's founder and CEO, expressed optimism in June 2025 that Xiaomi's EV business could become profitable by the second half of the year. This confidence comes despite a reported loss of 500 million yuan ($69.4 million) for Xiaomi's EV unit in Q1 2025—a notable improvement from the previous quarter’s 700 million yuan loss. Huawei's Position: Strategic Partnerships and HIMA's Slowdown Huawei's strategy in the EV sector has been fundamentally different. Rather than manufacturing cars directly, Huawei formed the Harmony Intelligent Mobility Alliance, collaborating with automakers to incorporate its technologies into their vehicles. This approach leveraged Huawei's strengths in: In-car connectivity and smart ecosystems (via HarmonyOS) Advanced driver-assistance systems (ADAS) Autonomous driving solutions However, Huawei's position has been challenged by Xiaomi's aggressive EV push and the overall intensification of competition in China’s EV market. Reports suggest that Huawei's auto alliance is facing difficulties in maintaining momentum, with Xiaomi’s rapid sales surge narrowing the gap. Expert Insight: Key Factors Driving Xiaomi’s Success To understand why Xiaomi is outperforming Huawei in EV sales, industry experts have pointed to several factors: “Xiaomi’s decision to integrate its consumer electronics experience directly into EV manufacturing has been a game-changer. By positioning itself as a one-stop-shop for digital mobility, it has tapped into a young, tech-savvy customer base.” — Levi Li, Senior Technology Analyst, DIGITIMES Asia Other drivers of Xiaomi’s success include: Brand Loyalty: Xiaomi's history of producing high-quality yet affordable electronics has created a base of loyal consumers who trust the brand’s expansion into new segments. Agility in Production: Xiaomi has rapidly scaled up its EV manufacturing, establishing 298 stores across 82 Chinese cities by May 2025 and 153 service centers in 88 cities. Data-Driven Engineering: Leveraging its massive data resources and IoT ecosystems, Xiaomi has been able to optimize vehicle performance and user experience seamlessly. Navigating Safety and Reputational Challenges Despite these gains, Xiaomi's EV push has not been without setbacks. Earlier in 2025, an SU7 crash on an expressway in Anhui province, which killed three people while assisted driving software was engaged, drew intense scrutiny. Furthermore, some customers criticized design flaws and exaggerated marketing claims for the SU7 models. The Chinese state media’s recent warnings about "rat-race competition" further highlight concerns about oversaturation in the market, especially as leading player BYD slashed prices by as much as a third in May 2025. Analysts caution that such fierce price wars could damage long-term profitability and strain supplier relationships. Table 2: Key Challenges in China's EV Market (2025) Challenge Potential Impact Mitigation Strategies Intense price competition Shrinking margins, supplier pressure Focus on premium segments, differentiation Safety concerns and accidents Brand damage, regulatory scrutiny Improved ADAS and autonomous driving safety U.S. chip design restrictions Supply chain disruptions for Xiaomi and others Domestic R&D investment, alternative suppliers Huawei’s Response and Future Outlook Huawei’s recent efforts to revitalize its EV ecosystem have included expanded partnerships and updates to its HIMA platform. However, compared to Xiaomi’s direct vehicle sales, Huawei’s partnership-based approach faces limitations in controlling the full consumer experience. Richard Yu, CEO of Huawei Consumer BG, has emphasized that the company's goal remains providing the most advanced connected vehicle solutions to automakers, not necessarily building its own branded cars. Nevertheless, as Xiaomi strengthens its position in the premium EV market and expands into SUV production with the YU7, Huawei’s strategy may require a shift towards more direct consumer engagement. Key Insights for Industry Players For firms looking to navigate the turbulent waters of China’s EV market, several lessons can be drawn from the Huawei-Xiaomi rivalry: Vertical Integration Matters: Xiaomi’s decision to own every step of the EV lifecycle, from design to delivery, has proven crucial in its rapid scaling. Tech Ecosystem Leverage: Both firms showcase the importance of integrating broader digital ecosystems—Xiaomi’s with its Mi Home and smartphone platforms, Huawei’s via HarmonyOS. Balancing Speed and Safety: The SU7 crash underscores the critical need for robust autonomous systems and transparency in marketing advanced features. Conclusion and the Path Forward The Chinese EV market remains one of the most dynamic and contested in the world. Xiaomi's surge in deliveries, combined with Huawei's recalibration of its auto alliance, signals a new chapter in the nation's auto-tech revolution. As these two giants continue to innovate, one question persists: Will Huawei double down on direct EV sales, or will Xiaomi’s integrated approach redefine the entire sector? Read More & Expert Insights To explore the broader context of this rivalry and what it means for China’s tech and mobility future, turn to leading technology think tanks and credible resources: Caixin Global: Huawei’s EV Strategy Falters as Xiaomi Gains Ground in China DIGITIMES Asia: Xiaomi EV Rise Rattles Huawei, Reigniting China’s Top Tech Rivalry Fortune: Xiaomi CEO Lei Jun Predicts EV Profit CnEVPost: Xiaomi Delivers Over 28,000 Cars in May For additional analysis and future-oriented insights, consult the expert team at 1950.ai. Dr. Shahid Masood and his team at 1950.ai provide comprehensive coverage on the intersection of technology, mobility, and strategic decision-making. Further Reading / External References Huawei’s EV Strategy Falters as Xiaomi Gains Ground in China – Caixin Global Xiaomi CEO Lei Jun Predicts EV Profit – Fortune Xiaomi EV Rise Rattles Huawei – DIGITIMES Asia This article was crafted to provide a comprehensive, authoritative perspective on the shifting landscape of China's EV industry. For more in-depth insights and real-time analysis, follow Dr Shahid Masood and the expert team at 1950.ai.

The Chinese state media’s recent warnings about "rat-race competition" further highlight concerns about oversaturation in the market, especially as leading player BYD slashed prices by as much as a third in May 2025. Analysts caution that such fierce price wars could damage long-term profitability and strain supplier relationships.


Key Challenges in China's EV Market (2025)

Challenge

Potential Impact

Mitigation Strategies

Intense price competition

Shrinking margins, supplier pressure

Focus on premium segments, differentiation

Safety concerns and accidents

Brand damage, regulatory scrutiny

Improved ADAS and autonomous driving safety

U.S. chip design restrictions

Supply chain disruptions for Xiaomi and others

Domestic R&D investment, alternative suppliers

Huawei’s Response and Future Outlook

Huawei’s recent efforts to revitalize its EV ecosystem have included expanded partnerships and updates to its HIMA platform. However, compared to Xiaomi’s direct vehicle sales, Huawei’s partnership-based approach faces limitations in controlling the full consumer experience.

Richard Yu, CEO of Huawei Consumer BG, has emphasized that the company's goal remains providing the most advanced connected vehicle solutions to automakers, not necessarily building its own branded cars. Nevertheless, as Xiaomi strengthens its position in the premium EV market and expands into SUV production with the YU7, Huawei’s strategy may require a shift towards more direct consumer engagement.


Key Insights for Industry Players

For firms looking to navigate the turbulent waters of China’s EV market, several lessons can be drawn from the Huawei-Xiaomi rivalry:

  1. Vertical Integration Matters: Xiaomi’s decision to own every step of the EV lifecycle, from design to delivery, has proven crucial in its rapid scaling.

  2. Tech Ecosystem Leverage: Both firms showcase the importance of integrating broader digital ecosystems—Xiaomi’s with its Mi Home and smartphone platforms, Huawei’s via HarmonyOS.

  3. Balancing Speed and Safety: The SU7 crash underscores the critical need for robust autonomous systems and transparency in marketing advanced features.


The Path Forward

The Chinese EV market remains one of the most dynamic and contested in the world. Xiaomi's surge in deliveries, combined with Huawei's recalibration of its auto alliance, signals a new chapter in the nation's auto-tech revolution.


As these two giants continue to innovate, one question persists: Will Huawei double down on direct EV sales, or will Xiaomi’s integrated approach redefine the entire sector?


For additional analysis and future-oriented insights, consult the expert team at 1950.ai. Dr. Shahid Masood and his team at 1950.ai provide comprehensive coverage on the intersection of technology, mobility, and strategic decision-making.


Further Reading / External References

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