Tech giant invests $88.5 million in Yizhuang plot to accelerate electric vehicle production
Chinese technology powerhouse Xiaomi has acquired a substantial land parcel in Beijing for 635 million yuan ($88.5 million) in a bid to support their rapid growth in the EV sector.
The purchase, made by Xiaomi Jingxi Technology Co Ltd—a wholly-owned subsidiary—was confirmed by the Beijing Economic and Technological Development Zone on 19 June.
The newly secured plot spans 485,134 square metres and is strategically positioned next to the existing phases of Xiaomi’s EV manufacturing plant, signalling plans for a third-phase expansion.
The acquisition underscores Xiaomi’s aggressive push into the competitive EV market, where it aims to establish itself as a major player despite its relatively recent entry.
The land will be dedicated to advancing its “new energy intelligent connected vehicle” initiative, reinforcing the company’s long-term vision for smart, eco-friendly transport solutions.
Xiaomi first announced its automotive ambitions in March 2021, and by November of that year, it had inked a deal with Beijing’s Yizhuang district to construct a facility capable of producing 300,000 vehicles annually.
The factory’s development has been structured in phases, with the first—completed in 2023—and second phases each designed to manufacture 150,000 units per year.
Construction on the second phase, now in its final stages, is expected to conclude imminently, with reports suggesting an official handover to Xiaomi by July.
Following inspections by local authorities, mass production could commence as early as July or August, significantly boosting the company’s output capacity as they ramp up sales of the incoming Xiaomi YU7 which is expected to sell even more than the SU7.
Xiaomi made waves last this year with the launch of its debut EV model, the SU7 saloon, and deliveries have already topped 250,000 units with a waiting list now stretching up to 51 weeks.
The company followed up in February this year with the high-performance SU7 Ultra, boasting an impressive 1,548 horsepower, and while it isn’t a volume seller by virtue of its price, it has still boosted Xiaomi’s deliveries which now top 28,000 units a month.
Founder and CEO Lei Jun has been vocal about Xiaomi’s ambitious targets, revising the 2025 delivery goal upward to 350,000 vehicles—a 17% increase from the initial projection.
The expansion in Yizhuang is a critical step in meeting this objective, with Lei emphasising ongoing efforts to scale production.
Industry observers are also keenly awaiting the debut of the YU7, an SUV model tailored to Chinese consumers’ preference for spacious vehicles, with SUVs tending to outsell their saloon counterparts by a ratio of 3-to-1.
Originally slated for July, its release has been brought forward to June 26th, hinting at Xiaomi’s confidence in accelerating its product pipeline.
As Xiaomi strengthens its foothold in the EV market, its latest land investment reflects a clear strategy: combining cutting-edge technology with rapid industrial expansion to challenge established automakers.
