Xiaomi EV July deliveries reach 31,267 units, short of annual target pace

• Xiaomi EV needs average monthly deliveries of nearly 67,000 units over the remaining 5 months to achieve its full-year target of 550,000 units.
• The key variable for the second half is the new Sky Nomad product line.

Xiaomi EV, the electric vehicle unit of Xiaomi (HKEX: 1810), delivered 31,267 vehicles in July, up 2.68% year-on-year but down 9.99% from june, according to data released Tuesday by the China Passenger Car Association (CPCA).

This marked Xiaomi EV's fourth consecutive month with deliveries above 30,000 units, although year-on-year growth was nearly flat. The company delivered 30,452 vehicles in July last year.

Xiaomi said on August 1 that July deliveries had "continued to exceed 30,000 units" but did not disclose the exact figure. The CPCA data provided a breakdown.

The performance of its two models diverged in July. The SU7 sedan delivered 21,044 units, up 3.09% month-on-month, ending a two-month streak of declines. However, deliveries were still down 13.79% year-on-year.

The YU7 SUV weakened significantly, with July deliveries falling 28.63% month-on-month to 10,223 units, although the figure was still up 69.20% year-on-year. The model delivered 14,324 units in June.

Xiaomi EV delivered a cumulative 216,322 vehicles in the first 7 months of the year, up 14.83% year-on-year, according to data compiled by CnEVPost.

That represents just 39% of its full-year target of 550,000 units. To reach the goal, Xiaomi EV would need average monthly deliveries of nearly 67,000 units over the remaining 5 months, more than double its current pace.

The key variable for the second half is the company's new product line. Xiaomi officially introduced its second vehicle series, Sky Nomad, on July 30, marking its first entry into the extended-range electric vehicle (EREV) segment.

The 7-seat flagship N90 Max has a pre-sales price of 299,900 yuan ($44,180), while the 5-seat N70 Max is priced at 259,900 yuan. Both models are scheduled to launch in September.

The pricing is lower than Tesla (NASDAQ: TSLA) Model Y L's 339,000 yuan price tag, putting the models in direct competition with Li Auto (NASDAQ: LI) and Huawei-backed Aito.

Chinese media outlet Cailian reported on August 5 that pre-orders for the Sky Nomad series may have exceeded 100,000 units, although the estimate was not based on official data.

The aggressive pricing strategy initially unsettled investors. Xiaomi shares in Hong Kong fell as much as 11% intraday on July 31 before closing down 7.28%.

A team of analysts led by Wang Bin at Deutsche Bank attributed the pricing strategy to pressure on Xiaomi to boost sales.