Xiaomi’s Contrasting Trajectory: Robust SUV Sales in China vs. Slowing Smartphones

• YU7 leads China retail sales in January with 37,869 units
• Smartphones in China: Xiaomi down 36% year-on-year in January
• Buyback: 4.1 million Class-B shares purchased yesterday
• E‑auto goal for 2026: 550,000 deliveries

EV performance: retail win but wholesale data adds nuance

In January’s end-customer retail rankings for China, the YU7 electric SUV topped the list with 37,869 units sold, ahead of Tesla’s Model Y at 16,845 units, placing second in the retail chart. Xiaomi’s overall January EV shipments were roughly 39,000, with the YU7 making up the majority.

However, the wholesale figures—which include exports—tell another story. In January, the Tesla Model Y registered 38,916 units in wholesale, ranking fourth, while the YU7 posted 37,869 units in wholesale, ranking fifth.

The data also illustrate Tesla’s role as an export hub from Shanghai: 50,644 vehicles were shipped abroad in January. Domestic China sales stood at 18,485 units, the lowest since November 2022.

Smartphones: pronounced decline in the core market

Should investors sell immediately? Or is it worth buying Xiaomi?

While the EV segment provided some lift, the smartphone business faced headwinds. Counterpoint Research shows that China’s smartphone sales in January fell 23% year over year. Xiaomi was hit hard, with a 36% drop versus the prior year.

Notably, Apple bucked the market trend, increasing shipments by 8%, buoyed by demand for the iPhone 17 series.

Share buyback: reinforcing investor confidence

Concurrent with the market mix, Xiaomi advanced its own stabilizing move: on February 12, the company bought 4.1 million of its Class-B shares. This action is part of a buyback program that had been announced in January.

Outlook: chasing the 2026 EV target amid mixed momentum

Overall, Xiaomi presents a divided picture. The YU7’s strength in the Chinese retail channel contrasts with a shrinking smartphone market in China, particularly for Xiaomi, while the company’s buyback activity adds a degree of steadiness. The next key milestone is whether January’s SUV momentum can be sustained to reach the 2026 goal of delivering 550,000 electric vehicles.