Xiaomi’s Strategic Crossroads: EV Triumphs Amid Product Safety Challenges

Chinese technology giant Xiaomi finds itself navigating a complex landscape of remarkable success and significant operational challenges. The company’s massive investment in electric vehicles is yielding unprecedented returns, even as a critical product recall threatens to undermine consumer confidence in its broader ecosystem.

Xiaomi’s strategic pivot toward electric mobility has exceeded even the most optimistic projections. The company’s automotive division delivered over 30,000 vehicles in August 2025 alone, demonstrating remarkable market traction. This explosive growth propelled the company to exceptional second-quarter 2025 results, with total revenue reaching 116 billion yuan ($16.1 billion) and net profit surging to 10.8 billion yuan. These figures represent a watershed moment for Xiaomi’s diversification strategy and have fundamentally altered the company’s financial trajectory.

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