Xiaomi Shares Jump on Europe EV Expansion Plan

Xiaomi shares climbed sharply on Friday after the Chinese technology giant confirmed plans to begin selling its electric vehicles in Europe in 2027, marking a major step in its international EV expansion.

Xiaomi Corp shares rose 3.6% to HK$28.46 in Hong Kong trading and briefly touched a 10-day high of HK$28.76. The stock was also among the biggest contributors to gains in the Hang Seng Index, which advanced about 2%.

The rally followed comments from Xiaomi executives at the IFA Berlin trade show on Thursday. The company has signed memoranda of understanding with eight major German dealer groups as it prepares to establish an EV sales presence in Europe, according to Electrek.

The agreements are designed to help Xiaomi develop what it described as a “high-quality retail and service network” ahead of its planned European EV launch.

Europe could become an important growth market for Xiaomi as Chinese electric vehicle manufacturers increasingly look overseas amid intense competition at home. Chinese rivals including BYD and SAIC have already expanded their presence across European markets.

Xiaomi remains a relatively young player in the electric vehicle industry. The company launched its first EV in China in early 2024 but has since sold more than 700,000 vehicles, highlighting the rapid growth of its automotive business.

Its SU7 electric sedan has emerged as a key sales driver, while the YU7 has also attracted strong interest from consumers. The success of both models has helped Xiaomi establish itself as an increasingly significant competitor in China's crowded EV sector.

Xiaomi is also broadening its vehicle lineup. The company recently introduced its new SkyNomad series, marking an expansion into the extended-range and large-space vehicle segment.

The planned Xiaomi EV Europe launch in 2027 could provide another growth avenue for the company as it seeks to transform its domestic electric vehicle momentum into a broader global automotive business.