Xiaomi’s electric car division has signed agreements with eight leading German car dealer groups to start its overseas market journey in Europe. Lu Weibing, Xiaomi’s President and Brand General Manager, explained in a live broadcast from the IFA 2026 tech show in Berlin why Europe was picked as Xiaomi’s first global car market.
The chosen German dealers each have long histories, some dating back over a century, with family businesses spanning five generations. These firms originally operated in sectors like bicycles and sewing machines before entering automotive retail, building strong distribution networks and brand management skills. Lu noted dealers have grown more familiar with Xiaomi, with over 40% of German potential customers already positively aware of Xiaomi’s cars, such as the Xiaomi SU7 model, even before official sales began.
Partner Feedback Highlight s Technology and Ecosystem Strength
European partners have highlighted three key strengths associated with Xiaomi: technology, premium quality, and a strong ecosystem. They see Xiaomi as more than a phone or car maker; it is a technology ecosystem company offering a “car plus full ecosystem” advantage.
The decision to launch first in Europe reflects Xiaomi’s “tackle the hardest first” strategy. Europe’s automobile market includes top global manufacturers like Mercedes-Benz, BMW, Volkswagen, Renault, and Stellantis, and is known for stringent market access rules and fierce competition. Xiaomi believes that succeeding in this demanding environment will ease expansion into other regions later.
Deep Roots and Local Adaptation
Xiaomi has cultivated its European presence since 2017, holding its first Europe product launch in Madrid, participating in the Mobile World Congress for 11 consecutive years (2016–2026), and hosting new product launches in Vienna and Berlin. The brand is widely recognized, with more than 90% awareness in Europe.
To support automotive activities, Xiaomi established an auto R&D center in Munich two years ago, staffed with experienced engineers from traditional European carmakers. These experts value the chance to engage in a “zero to one” startup within a tech-centric environment.
Lu highlighted that, unlike mobile phones, cars require high regional customization due to differing climates, road conditions, cultures, and driving habits. For example, the company is tailoring its vehicles to handle German autobahn speeds exceeding 200 km/h, towing needs common among European users, climate extremes from northern winters to southern summers, and a fragmented charging infrastructure that demands broad compatibility for cross-border use.
Xiaomi is also working on localizing smart navigation systems to adapt to various European traffic rules, languages, and weather conditions.
Source: ithome.com
