By James Broughton, February 11, 2025
Xiaomi Auto has made a surprising move by partnering with Hyperion Leasing (Tianjin), a subsidiary of the state-owned China National Machinery Industry Corporation (Sinomach), to facilitate the export of its electric vehicles (EVs) to major global markets. This marks a departure from Xiaomi’s previous strategy, which prioritized the domestic market before considering international growth.
Founded in 1997, Hyperion Leasing operates under Sinomach, a conglomerate with over 160,000 employees and a presence in 170 countries. The new partnership aims to promote Xiaomi’s vehicles internationally, though specific target markets have not been disclosed.
Xiaomi currently offers one model in China, the SU7 sedan, which achieved 139,487 sales in 2024. Due to high demand, delivery times range between 22 and 31 weeks. To meet demand, Xiaomi is building its F2 plant, which will also produce a second model, the YU7 electric crossover.
The push for overseas expansion appears motivated by profitability concerns, as Xiaomi reported a $5,250 loss per vehicle in Q3 2024. Exporting may improve margins, as Chinese automakers typically earn more from overseas sales.
The nature of the partnership suggests that Hyperion Leasing will act as an exporter, managing distribution and maintenance of Xiaomi vehicles abroad. Sinomach’s existing automotive operations, particularly in Russia, position it to help Xiaomi expand into that market and potentially other regions.
Currently, Xiaomi vehicles are available internationally only through parallel export channels, with Russia and the Middle East accounting for most sales. However, volumes remain low, with only 179 SU7 units sold in Russia last year. The formal partnership with Hyperion is expected to strengthen Xiaomi’s global presence and boost profitability.
