In October, Xiaomi Auto reached a milestone, delivering over 20,000 vehicles and pushing its production capacity utilization to a notable 160%. Yet, despite this achievement, demand is keeping the company on its toes. The newly launched SU7 Ultra, priced at RMB 814,900 (USD 114,086), saw 3,680 orders within 10 minutes at the end of October, highlighting a level of consumer interest that Xiaomi’s current production pace is struggling to meet.
Meanwhile, the original SU7 model remains strong, averaging weekly orders of around 4,000 units since August. October saw new orders hit 23,000, underscoring Xiaomi’s urgent need to ramp up production to meet surging demand. According to 36Kr, Xiaomi aims to increase SU7’s monthly output to 24,000 units by the end of December.
Xiaomi’s initial factory, designed with an annual capacity of 150,000 units—or about 12,500 units monthly—now requires substantial adjustments to double its output. This has prompted Xiaomi to implement major changes to its production schedule and efficiency.
According to National Business Daily, Xiaomi’s second plant is in overdrive, running day-and-night shifts to meet a mid-June 2025 completion deadline.
Insiders reveal Xiaomi’s urgency: upon completion, the second plant will go through internal inspections and regulatory checks from the Ministry of Housing and Urban-Rural Development, setting its production start for as early as July, but no later than August. Once both plants are operational, Xiaomi’s combined annual capacity will reach 300,000 units.
Since the SU7’s debut on March 28, Xiaomi has ridden a wave of consumer excitement, securing 88,898 preorders within 24 hours. To address component shortages and expedite deliveries, Xiaomi’s supply chain team quickly engaged suppliers nationwide. During a May earnings call, CEO Lei Jun announced a shift to a two-shift schedule starting in June, targeting monthly deliveries of 10,000 units. Initially, Xiaomi set a 2024 delivery goal of 100,000 units, but rising demand led to an updated goal: guaranteeing 100,000 units with a stretch target of up to 120,000.
After months of accelerated production, Xiaomi hit a new record in October, delivering 20,000 SU7 units. Lei Jun marked the occasion on social media, noting that Xiaomi may reach its 100,000-unit goal early, possibly by November. For comparison, Tesla’s Model 3 took 18 months post-launch in 2017 to hit similar figures, while Zeekr’s 001 reached it in 10 months after its 2021 debut. Xiaomi’s eight-month achievement highlights the strength of its supply chain and robust market demand.
Yet challenges remain. According to Xiaomi Auto’s app, the SU7’s current delivery window is 25–28 weeks, meaning new orders placed now may not be fulfilled until April. Reports indicate that demand for the SU7 spiked again in June after a two-month post-launch plateau, with weekly orders stabilizing at around 4,000 units. The October launch of the SU7 Ultra brought monthly orders to 23,000, outpacing Xiaomi’s current production capacity.
With production at 20,000 units per month, Xiaomi’s first plant is running at 160% capacity. To reduce delays, Xiaomi aims to increase monthly output to 24,000 units by year-end. However, further expansion is critical to keep pace with demand.
Looking ahead, Xiaomi plans to start SU7 Ultra production with deliveries beginning in March 2025. Another SUV model, codenamed “MX11,” is expected to launch and enter production that year. SUVs are capturing over 50% of China’s passenger vehicle market from January to September, and Xiaomi is preparing to meet this demand with sufficient production capacity across its lineup.
By 2025, with three models—SU7, SU7 Ultra, and the MX11—entering production, Xiaomi’s first plant will be stretched to its limits. The timely completion of its second plant is essential. Public filings show that Xiaomi’s second plant, located adjacent to the first, spans 718,000 square meters with 400,000 square meters of floor space and a capacity of 150,000 units per year. Construction has accelerated to keep up with these demands.
Xiaomi is reportedly pushing for early commissioning, targeting completion by June 2025. Following internal inspections and regulatory approvals, the plant is expected to begin production by July or August. Together, the two plants will bring Xiaomi’s annual capacity to 300,000 units, easing much of the delivery strain.
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KrASIA Connection features translated and adapted content that was originally published by 36Kr. This article was written by Xu Caiyu for 36Kr.