Xiaomi Targets 2027 Auto Expansion as Memory Costs Rise

Xiaomi is positioning smartphones, artificial intelligence and electric vehicles as pillars of its next phase of growth. Rising memory prices threaten margins in the fiercely competitive handset market, prompting the Chinese technology group to lean on product upgrades and premium devices. Its planned overseas auto expansion will test whether Xiaomi can transfer the manufacturing, software and brand capabilities developed in China to international markets.

Xiaomi Group President Lu Weibing said the company aims to be among the last handset makers to raise prices and will use product upgrades to offset higher memory costs, without disclosing the size of any increase or additional investment. Xiaomi plans to formally begin exporting cars in 2027. The company also designated 2024 as the first year of AI smartphones and planned to release a next-generation operating system with cross-device AI services in the second half of that year.