Xiaomi Outsells Tesla in China’s EV Market, Delivering 48,654 Vehicles in October 2025
In a significant shift in China’s electric vehicle (EV) market, Xiaomi has outpaced Tesla with record monthly deliveries. According to data released by the China Passenger Car Association, Xiaomi delivered 48,654 EVs in October 2025, more than doubling Tesla’s 26,006 units sold during the same period. This marks Tesla’s weakest monthly performance in China since 2022, highlighting the growing strength of domestic competitors.
**Xiaomi’s Rise in the EV Market**
Xiaomi entered the automotive market in 2024 with the launch of its SU7 sedan, followed by the YU7 SUV in early 2025. Both models are designed to compete directly with Tesla’s popular Model Y and Model X by offering lower prices combined with premium technology features.
Leveraging its expertise from smartphone manufacturing, Xiaomi has integrated its vehicles seamlessly with its existing ecosystem of phones and smart home products. Over-the-air software updates for its cars function much like updates for Xiaomi’s mobile devices, creating a cohesive and user-friendly experience. This device integration, coupled with attractive pricing, has resonated strongly with Chinese consumers.
**Tesla’s Challenges Amid Stiff Domestic Competition**
Tesla has struggled to maintain its foothold in China despite several price cuts and model refreshes throughout 2024 and 2025. These efforts failed to halt its sales decline as Chinese consumers increasingly favor domestic brands that better understand local preferences.
As a result, Tesla fell out of China’s top ten monthly new energy vehicle sellers. While the company has increased exports from its Shanghai manufacturing plant to compensate for weakened domestic demand, it faces a fundamental challenge: losing market share to homegrown automakers that deliver strong quality, advanced features, and competitive prices.
**Cooling Market Conditions Impact All Players**
October 2025 also saw a general slowdown in China’s auto market following the expiration of government subsidies and purchase incentives. Authorities, concerned about market overheating, ended several support programs without introducing replacements.
Even the market leader BYD experienced a 12% year-over-year sales drop. Despite this industry-wide cooling, Xiaomi’s robust growth stood out, setting a new monthly delivery record driven by strong demand for both the SU7 and YU7 models.
**Investor Confidence and Future Outlook**
Xiaomi’s stock responded positively to the strong sales data, rising as much as 4% to HK$44.62 during Hong Kong trading and contributing to a 0.5% gain in the Hang Seng index.
However, questions remain about the company’s profitability as automotive manufacturing typically involves tight margins in early production stages. Xiaomi will need to carefully manage growth, maintain quality standards, and mitigate risks such as production delays or safety issues that could impact its brand reputation.
The fading of government subsidies could also dampen broader consumer demand, presenting additional challenges to sustained growth.
**Strategic Advantages Help Xiaomi Gain Market Share**
Xiaomi’s advantage lies in its integrated device ecosystem, which encourages brand loyalty by offering cars that connect natively with customers’ existing products. This integration creates switching costs that can help retain buyers within Xiaomi’s ecosystem.
Strong digital marketing campaigns and preorder initiatives generated early momentum, capitalizing on Xiaomi’s widespread consumer base. Local manufacturing partnerships and government support for domestic EV producers helped Xiaomi scale production efficiently, avoiding the supply chain disruptions that have affected some rivals.
**Conclusion**
The China Passenger Car Association’s data reflects a turning point in the Chinese EV market, with Xiaomi’s 48,654 vehicle deliveries outpacing Tesla’s 26,006 in October 2025. Xiaomi’s blend of competitive pricing, integrated technology, and local market understanding positions the company as a rising force in the automotive industry as Tesla contends with mounting challenges.
As the Chinese EV market continues to evolve amid changing subsidies and consumer preferences, Xiaomi’s performance will be closely watched by investors and industry analysts alike.
https://blockonomi.com/xiaomi-stock-tech-giant-crushes-tesla-in-china-ev-sales-battle/
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