Xiaomi Joins the EV Charging Network Race Alongside NIO, XPeng, and Li Auto in China

Investing.com -- Chinese consumer electronics company Xiaomi has announced its partnership with the electric vehicle (EV) charging networks of competitors NIO, XPeng, and Li Auto. This collaboration will provide Xiaomi's automotive customers access to over 29,000 charging stations across China.

The announcement was made on Wednesday in a Weibo post. Xiaomi stated that its vehicles can now be used at more than 14,000 charging stations developed by NIO, 9,000 by XPeng, and 6,000 by Li Auto. The company did not provide further details regarding the agreements.

CCB International analyst Qu Ke described these partnerships as a strategic move by Xiaomi to maximize the utilization of its existing resources.

Primarily known for its smartphones and home appliances, Xiaomi is a relatively new player in the world's largest EV market. Despite the competition, Xiaomi's EV business reported strong sales performance since launching its first car in March.

In the third quarter alone, the company generated 9.7 billion yuan ($1.33 billion) in revenue, an increase over the second quarter. The gross profit margin for the business also improved, rising from 15.4% to 17.1%.

In November, Xiaomi reached its 2024 delivery target of 100,000 units ahead of schedule, which led the company to raise its annual target to 130,000 units.

Xiaomi shares, which closed at 32.75 Hong Kong dollars before the Christmas holiday, have doubled in value this year. This increase is attributed to strong earnings and the better-than-expected performance of its EV business.