Xiaomi unveils first SUV, heavy investment in R&D

Lei Jun, chairman and CEO of Xiaomi, speaks during a product launch event in Beijing on Thursday. (Photo provided to chinadaily.com.cn)

Xiaomi Corp said on Thursday it will invest 200 billion yuan ($27.8 billion) in research and development from 2026 to 2030, as the Chinese company aims to beef up its technological prowess in crucial technologies, including semiconductors and automobiles.

The plan was unveiled at the company's 15th-anniversary product launch event in Beijing on Thursday, where its first SUV, the YU7, was debuted. The vehicle's price remains unknown, however, and it will not hit the market until July.

Lei Jun, chairman and CEO of Xiaomi, said the company's cumulative R&D expenditure hit 102 billion yuan during the past five years, with 2025's R&D budget set to surge by more than 30 percent, year-on-year.

The senior executive emphasized Xiaomi's 11-year pursuit of semiconductor development, stating: "If Xiaomi aims to become a world-class hardcore technology company, mastering chip technology is a summit we must conquer. This is a battle we cannot avoid."

The company's self-developed 3nm chip, XRing O1, is positioned to rival industry leaders including Apple's A18 Pro processor, Lei said.

At the event, Xiaomi also unveiled its latest flagship smartphone, the 15S Pro series, which is powered by the XRing O1.

Lei said Xiaomi's global smartphone market share has now held steady in third place for 19 consecutive quarters.

Meanwhile, the company's automotive division marked a milestone with the Xiaomi SU7 sedan, which has accumulated 258,000 deliveries since its launch, including 28,000 units delivered in April alone.

The SU7's success completes Xiaomi's strategic "human-vehicle-home ecosystem" vision, Lei said.

The event also showcased Xiaomi's first SUV, the YU7, a luxury high-performance model slated for release in July. The vehicle has dispensed with traditional instrument panels and adopted an immersive panoramic "hyper vision" theme using heads-up display technology. The windshield-projected interface spans the driver's field of view for enhanced safety and engagement.

According to Lei, the YU7's premium version features a 690-horsepower powertrain and achieves 0-100 km/h acceleration in 3.23 seconds, with a top speed of 253 km/h.