On June 3, Lei Jun, Chief Executive Officer of Xiaomi Corp, disclosed at the company’s investor conference that the recently launched Xiaomi YU7 will not be priced at the rumored 235,900 yuan ($32,820.44) as speculated online. The official price will only be confirmed one or two days before sales commence.
Lei stated that losses in Xiaomi’s automotive business are gradually narrowing and profitability is expected to be achieved in the third and fourth quarters of this year. Additionally, the total R&D budget for the YU7’s intelligent driving system reached 3.5 billion yuan ($487 million), positioning it at the industry’s forefront in terms of investment.
Simultaneously, Xiaomi began investing in robotics R&D five years ago. Relevant capabilities are currently being trialed in its automotive factory, and Xiaomi’s in-house automotive chips are under development with an expected launch in the near future.
Lei emphasized that Xiaomi will maintain its long-term commitment to capping hardware net profit margin at 5%.
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