Deutsche Bank analyst Bin Wang expects Xiaomi's electric-vehicle business to
report a loss for the first quarter, citing elevated R&D expenses and temporary
promotions. Although EV deliveries rose 5% to over 79,416 units, the gross
margin for the smart EV and AI segment is projected to drop 4.7 percentage
points to 18%. This contraction is primarily attributed to discounts of up to
15,000 yuan provided to buyers who ordered before November 2025 but received
delivery in 2026.
