The headlines about Chinese EVs almost always lead with the prices, and for good reason, they’re often absurdly low. What gets buried is that most of the companies building these cars are often bleeding money on every one that leaves the factory. Xiaomi is the latest name to land in that column.

The technology giant, often viewed as the Apple of China, spun up a smart EV and AI division a few years back with the express purpose of building cars. Two models are currently on sale: the SU7 sedan, which arrived to genuine acclaim, and the YU7 SUV. Both have found buyers in serious numbers. Xiaomi moved 80,856 vehicles across China in the first quarter alone.

Read: Xiaomi’s 990 HP Family SUV Costs Less Than A Base Macan EV And Outguns The Turbo

According to the company’s fillings seen by CarNewsChina, Xiaomi also generated 19.9 billion yuan or around $2.9 billion in revenue over the same period, yet posted an operating loss of 3.1 billion yuan ($457 million). This amounts to a loss of around $5,600 per car sold this year. From a financial perspective, things aren’t getting better for Xiaomi, and they’re actually getting worse.

During the first three months of 2025, it sold 75,869 vehicles. Although this was down 6.6 percent from this year, the company’s losses were also much smaller, so much so that it only lost roughly $900 per vehicle sold.

Losing Money As Quickly As Its Cars Accelerate

One obvious lever is the average transaction price, which currently sits at just 235,000 yuan, around $34,600. Pushing more buyers into the higher-margin variants would change the math quickly. The new 990 hp YU7 GT opens at 389,900 yuan, or $57,300. The SU7 Ultra, the hypercar-baiting flagship, starts at 529,900 yuan, a hair over $78,000. Neither is a volume play, but every one sold drags the average up.

Xiaomi posted particularly strong sales in April after a decline in February and March. Last month, it delivered 36,702 vehicles, significantly more than the 21,440 sold in March and the 20,414 sales reported in February. However, sales have yet to recover to the peak of 50,212 reached in December.

Xiaomi just can’t stop snatching Nurburgring lap records away from its European rivals. After the SU7 Ultra grabbed the four-door record in late 2024 before losing it again to the Porsche Taycan Turbo GT Manthey, the company has returned to take the outright production SUV record.

With chief test driver Ren Zhoucan behind the wheel, the new YU7 GT went around the Nordschleife in 7:34.931. That figure is enough to displace the Audi RS Q8’s 7:36.698, which itself had taken the record from the Porsche Cayenne Turbo GT Coupe at 7:38.925.

Read: Xiaomi’s 990 HP Family SUV Costs Less Than A Base Macan EV And Outguns The Turbo

There is, predictably with most Nurburgring record runs, an asterisk. The YU7 GT that set the time wasn’t the standard, or base, if you will, version you buy from a Xiaomi dealer. The Chinese carmaker says the vehicle was equipped with what appears to be an optional “Track Professional Package,” which sounds a lot like the Manthey upgrades Porsche uses for its record-setting cars.

Xiaomi has at least spelled out part of the kit. The package brings 265mm front and 325mm rear semi-slick tires, along with widened rear wheel arches to cover them. But there’s more.

“At the Nürburgring’s request, we performed safety modifications inside the car, including a full-cage roll cage, racing bucket seats, and six-point harnesses,” the company said. “We also removed some interior trim to balance the added weight of the roll cage. This is a production car that has passed the Nürburgring’s official certification and testing.”

The onboard video tells you the rest. The cage is in, the rear seats are gone, and the driver is sitting in what looks like a single lightweight bucket.

That said, the previous record holder in the category wasn’t exactly bone stock either. The RS Q8 also ran the mandatory roll cage and what looks from the video to be a lightweight safety bucket, with the rear bench pulled out for the run as well.

What Powers It?

Xiaomi presented the YU7 GT to the world at last month’s Beijing Auto Show. While not as extreme as the SU7 Ultra, it still offers the kind of power and performance once reserved for multi-million-dollar hypercars and previously unthinkable for a luxury SUV.

Beneath the skin is a 101.7 kWh battery pack that drives a 386 hp electric motor at the front wheels and a 604 hp motor at the rear wheels, delivering a combined 990 hp. There’s no official word yet on how quickly it can hit 100 km/h (62 mph), but it should leave most performance SUVs sold in the West for dead off the line.

Aiding in the YU7 GT’s on-track prowess is the fact that it uses a trick suspension that offers adjustability for the compression, rebound, and ride height, a setup that was specifically honed at the Nurburgring.

As expected, Xiaomi unveiled the flagship version of its YU7 SUV, known as the GT, at the Beijing Auto Show. It’s nowhere near as extreme as the SU7 Ultra, but it has been developed in part at the Nürburgring and brings with it a slew of upgrades over lesser variants.

As our own spy images from earlier this month revealed, the YU7 GT looks a lot more aggressive than the standard version. For example, it has flared wheel arches and a much more menacing front fascia, complete with a new blacked-out grille and unique air intakes. Positioned on the hood is a special badge made from carbon fiber and 24-karat gold.

Read: Xiaomi Brings Its 1,000HP YU7 GT To Porsche’s Backyard Naked And Unafraid

Xiaomi will sell the YU7 GT with 21- and 22-inch wheels, and has also upgraded its brakes. Other styling and aerodynamic tweaks are also found at the rear, including a dramatic diffuser and a small lip spoiler.

For as much as the YU7 GT may resemble a Ferrari Purosangue, it’s under the skin where most of the action is happening. Xiaomi has equipped the YU7 GT with a new front motor delivering 386 hp and a new rear motor with 604 hp, resulting in a combined 990 hp.

Although that falls well short of the SU7 Ultra’s 1,527 hp, it’s still a ludicrous amount of power for a family SUV, easily outgunning EVs like the flagship Porsche Macan Turbo Electric and its 630 hp.

Not Just About Power

Xiaomi has yet to release full performance specifications for the GT, including how quickly it can lap Green Hell. What we do know is that it will run on to 186 mph (300 km/h), and it’s safe to presume the sprint from a standstill to 62 mph (100 km/h) will be dealt with in the low-2-second range.

Beyond upgrading the motors, Xiaomi has included a new air suspension system, rear-axle torque vectoring, and made tweaks to the traction control. Buyers eager to take their YU7 GTs to the track will also be able to configure it with optional carbon ceramic brakes from Brembo.

Prices have yet to be confirmed, but the model is expected to start between 450,000 yuan ($65,800) and 500,000 yuan ($73,100). Xiaomi will be hopeful that it helps to reinvigorate interest in the YU7, which has seen sales decline from a peak of almost 40,000 units last December to just under 15,000 in March.

Baldauf