Xiaomi is selling more and more electric vehicles and is pushing ahead with factory expansion

Chinese smartphone maker Xiaomi's debut in the EV universe, the SU7, has been a hit in China and will significantly exceed production targets of 100,000 units a month early. Adding to this momentum, Xiaomi now expects that, driven by ambitions to build a global EV empire, Xiaomi will complete construction of an expansion of its EV factory by mid-2025, which should increase the number even further – at least is that the goal.

Reuters reports that the second phase of the Xiaomi Intelligent Manufacturing Industrial Base is scheduled to be completed on June 15, according to the Chinese government National business newspaper.

According to the report, workers worked overtime to complete the project. This is the second phase of a two-part plan to build a factory capable of producing up to 300,000 vehicles. Xiaomi's factory, as well as its automotive division's headquarters and sales and research units, are all located in Beijing's Yizhuang New Town, an economic development area outside the city and hotspot for high-tech companies including JD.com and Baidu.

Last December, Xiaomi introduced its first vehicle, the SU7, which officially launched in March and offers three versions – Standard, Pro and Max, with the Standard starting at $30,761. A souped-up hypercar version, the Ultra, was also introduced.

Designed to compete with the Tesla Model 3, the SU7 sedan has quickly become a major electric vehicle brand in China. As of the end of September, 70,000 units of the vehicle had been sold since deliveries began in March, Reuters reports. Of course, analysts have predicted that the company would lose money on its SU7 to the tune of about $10,000 per vehicle, but the smartphone maker has a healthy $15 billion cash reserve to weather the storm.

While the company faces strong competition in China from companies like BYD, it has enormous brand appeal for Chinese consumers who are already familiar with its products and user interfaces. In addition to an enticing price, the SU7 is a connected car that syncs with other devices. Compared to other electric vehicle manufacturers, Xiaomi also has a lead in software and a lead in autonomous driving, which the company has been testing on the road for several years.

The company reportedly plans to invest $10 billion over the next decade to build its electric mobility empire. By the end of the year, the company expects to expand to 22 stores, 135 service centers and 53 delivery centers in 59 cities. Electrics's Scooter Doll reported.

CnEVPost reported earlier this month that Xiaomi had reached its cumulative shipment target of 100,000 units of the Xiaomi SU7 series ahead of schedule in November, with a new target of shipping 120,000 units by the end of 2024.