Xiaomi Acquires Land for Third EV Plant in Beijing Yizhuang Expansion

On June 19, local media reported that Xiaomi has acquired land for its third EV plant in Beijing Yizhuang.

The land, acquired by Xiaomi Jingxi Technology, Xiaomi’s wholly owned company, is measured 485,100 sqm, neighboring Xiaomi’s Phase 2 EV plant, which is scheduled to start production in this July. The land transaction price was RMB 635 million (USD 88.2 million).

Production Footprint Expansion  

Let’s quickly go through Xiaomi’s production footprint in Beijing Yizhuang:

- Phase 1 plant : Covering an area of 718,000 sqm, with a projected annual capacity of 150,000 units (operational)  

- Phase 2 plant: Covering an area of 718,000 sqm, with a projected capacity of 150,000 units (scheduled July 2025 launch)  

- Phase 3 plant: Covering an area of 485,100 sqm, the industry insiders presumed a 100,000-unit annual capacity (land acquired June 2025)  

Upon Phase 3 completion, Xiaomi will have a total capacity exceeding 400,000 units annually.  

Capacity-Driven Imperative  

Since Xiaomi SU7’s launch in April 2024, Xiaomi Auto has achieved a sales performance that exceeds market expectations. Xiaomi has consistently delivered over 20,000 monthly units recent months.

This rapid demand growth has made Xiaomi start 24-hour production in the Phase 1 plant. The urgent need for increasing production capacity made Xiaomi accelerate its plant construction plan.

Xiaomi CEO, Lei Jun just announced the June 26 launch for Xiaomi’s first SUV, YU7. We assumed that the Phase 3 plant is expected to exacerbate existing capacity pressures.

*(Exchange rate: RMB 7.2 = USD 1)*