Xiaomi has announced a major organizational restructuring, according to multiple sources familiar with the matter who spoke with 36Kr.
As part of this reshuffle, the company has created a new architecture department responsible for defining the strategic direction of next-generation electric vehicle technologies. The unit reports directly to Xiaomi founder and CEO Lei Jun and includes senior R&D leaders and key technical staff.
People familiar with the matter told 36Kr that Cui Qiang, formerly head of vehicle R&D, has joined the new department, while Wang Zhensuo, previously head of electric powertrain technology, will now oversee vehicle R&D. The department will set the technical tone and direction for Xiaomi’s next generation of vehicles.
In the automotive sector, forward-looking technological planning is critical. At most automakers, however, this function sits within a secondary division reporting to a CTO or R&D director. Xiaomi’s decision to elevate it to a top-level department under Lei’s direct leadership hints at its commitment to long-term strategy and the definition of its own tech identity.
A single vehicle platform typically supports at least three models and remains in production for three to five years. This means one generation of technology architecture can determine a company’s competitiveness and sales performance for an extended period—and for automakers under pressure, even their survival. Because product development, validation, and mass production take years, automakers must define their technical direction five to eight years ahead.
“For example, in 2019, when 100-kilowatt fast-charging technology was still the norm, automakers were already debating whether to target 800-kilowatt fast-charging or solid-state batteries with higher energy density by 2025,” an industry insider told 36Kr.
Pre-research teams are expected to identify technology goals that do not yet exist, then conduct feasibility modeling and cost projections with suppliers. This process combines strategic vision, technical foresight, and supply chain collaboration.
Although the EV market appears technologically vibrant, it remains defined by deep uncertainty. On the electrification front, Xiaomi and BYD are competing to advance high-performance motor technologies while balancing cost and benefit. In batteries, both fast-charging and solid-state solutions are progressing in parallel. Higher charging speeds improve convenience but shorten battery life, while solid-state batteries show promise yet lack a clear commercialization timeline.
In the mechanical domain, automakers are moving toward steer-by-wire, brake-by-wire, and active suspension systems. The Nio ET9, priced from RMB 768,000 (USD 107,520), integrates both steer-by-wire and active suspension systems. These components remain costly, and while steer-by-wire reduces turning radius, it does not yet offer a significantly better driving experience than traditional rear-wheel steering. Suspension comfort still depends heavily on calibration, and a well-tuned air suspension can outperform an active one in real-world driving.
At the same time, adoption of large artificial intelligence models and Level 2 driver assistance systems is accelerating. The industry is now shifting toward Level 3 autonomy, though its business model and consumer willingness to pay remain uncertain.
By elevating technology architecture planning to a top-level department, Xiaomi aims to clarify its R&D investment priorities in an era of technological abundance yet strategic ambiguity, and to identify new engines for long-term growth.
Since entering the EV market in 2024, Lei has emphasized Xiaomi’s identity as a technology-driven automaker. From the outset, the company independently developed high-performance electric motors and planned three product generations. This enabled its first model, the SU7, to accelerate from zero to 100 kilometers per hour in 2.78 seconds, while the SU7 Ultra broke the Porsche Taycan’s lap record at Germany’s Nurburgring circuit.
Such forward-looking investment has strengthened Xiaomi’s technological credentials and supported its sales momentum. To date, cumulative SU7 deliveries have exceeded 258,000 units. The YU7, launched three months ago, has surpassed 40,000 deliveries, and the SU7 Ultra, priced from RMB 529,900 (USD 74,186), has received more than 23,000 orders. With volumes rising, Xiaomi’s automotive division is on track to reach quarterly profitability this year.
This restructuring seeks to harness the insight and experience of senior engineers to enhance Xiaomi’s foresight on technology trends and sharpen its strategic decision-making in innovation.
As product cycles shorten, automakers are under pressure to launch affordable, competitive models more quickly. Instead of pursuing full-scale generational platform upgrades that can take five years or more, many now focus on visible improvements—such as larger screens or improved seats—while coordinating with suppliers to reduce costs and boost short-term sales. This has led to widespread product homogeneity.
Such configuration-driven competition is unsustainable. Once certain features become standard, differentiation fades, price competition intensifies, and profitability declines.
Recognizing this, Li Auto has shifted direction. In 2024, CEO Li Xiang announced the company’s transformation into an AI-driven enterprise and introduced its MindGPT and vision-language-action (VLA) model.
With Lei now leading Xiaomi’s pre-research initiative, the company is formulating its own response to rapid technological iteration. Still, this reorganization is in its early stages. Its ultimate outcome will depend not only on Xiaomi’s commitment and strategic clarity but also on whether it can translate frontier research into market-ready products.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This article was written by Xu Caiyu for 36Kr.