Xiaomi: a 2.6 billion yuan quarterly loss on cars
About this video
2.6 billion yuan in losses. In a single quarter. That is how much Xiaomi's unit for cars, artificial intelligence and new projects lost in the spring. It is the second loss in a row. Last autumn, the unit was still profitable. Strange? Deliveries rose 28 percent, to 104 thousand cars. But the margin fell from 26 to 19 percent. Cars sell for less, and parts cost more. The day before the results, Xiaomi touted its 500,000th SU7. This is the picture across China: in the price war, the industry's margin fell to 1.5 percent, the lowest in almost a decade. Sales grow, profit disappears. Xiaomi responds with cheaper versions and a plan to enter Europe.
