Xiaomi Automobile stirs up the automotive circle again! The first SUV model YU7 has officially been announced, expected to be launched in mid-2025.
Xiaomi is ambitious, having completed the delivery of 100,000 units ahead of schedule, and has raised its annual sales target to 120,000 units. UBS, in a research report released on the 12th, predicts that with the addition of the new model YU7 and the increase in production capacity, Xiaomi Automobile's total sales in 2025 are expected to double, reaching 260,000 units.
The supplier lineup for YU7 is also gradually emerging. UBS believes that Top Group, FUYAO GLASS, MINTH GROUP, Huayang, NEXTEER, KEBODA, and other companies are expected to become partners with Xiaomi, providing core components for YU7, including seats, glass, exterior parts, smart cockpits, steering systems, and automatic transmissions.
Among them, Top Group can provide components with a CPV (average material cost) value of up to 5,000-8,000 yuan, demonstrating Xiaomi's high emphasis on interior quality.
<img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/4df318c0-96f7-40b3-804f-f9f4500f8644.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/4df318c0-96f7-40b3-804f-f9f4500f8644.png"/>
Image source: Xiaomi Automobile official website
<h2>Xiaomi Automobile's sales are booming, driving growth in the supply chain</h2>
Since its launch in April last year, the Xiaomi SU7 has sold over 110,000 units, achieving remarkable results.
Entering the fourth quarter of 2024, Xiaomi Automobile has begun to sprint. In October, it aimed to deliver over 20,000 units, with production plans for November and December both exceeding 22,000 units.
UBS predicts that with the addition of the new model YU7 and the increase in production capacity, Xiaomi Automobile's total sales in 2025 are expected to double, reaching 260,000 units.
Although the overall automotive market may experience a slowdown in demand after the end of policy stimulus, UBS believes that brands targeting the mid-to-high-end market, such as Li Auto, Nio, and Xiaomi, will continue to maintain strong growth momentum, thereby providing growth flexibility for suppliers.
As Xiaomi's production capacity continues to expand, suppliers are expected to receive more orders, achieving rapid revenue growth. Especially in the core component areas such as batteries, motors, and electronic control systems, suppliers will welcome new development opportunities.
<h2>UBS optimistic about the emerging electric vehicle supply chain, FUYAO, Desay SV, and Top Group become the focus</h2>
The report shows that compared to traditional joint ventures and overseas suppliers, UBS is more optimistic about companies that have close cooperation with emerging electric vehicle brands.
Specifically, FUYAO GLASS, Desay SV, and Top Group have become key focus areas for UBS.
<blockquote>
<ul>
<li>FUYAO GLASS: With its strong production capacity in the global market, especially in the U.S. market, FUYAO GLASS holds a leading position in the automotive glass sector. FUYAO GLASS can provide automotive glass with a CPV exceeding 2,000 yuan.</li>
<li>Desay SV: As a global leader in smart automotive R&amp;D, Desay SV has deep technical accumulation in smart cockpits, intelligent driving, and other fields, with overseas orders continuing to grow.</li>
<li>Top Group: Established solid cooperative relationships with emerging technology companies such as Li Auto and Huawei, possessing core competitiveness in smart cockpits and chassis systems
<img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/e1b0914d-7353-472d-8be0-f58b934b4c33.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/e1b0914d-7353-472d-8be0-f58b934b4c33.png"/></li>
</ul>
</blockquote>
Emerging electric vehicle brands have significant advantages in technological innovation and market responsiveness, and their supply chains will also benefit from this trend. UBS believes that companies like FUYAO GLASS, Desay SV, and Top Group, leveraging their strengths in technology and market, are expected to occupy favorable positions in this rapidly developing market

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UBS believes that companies such as Topband, FUYAO GLASS, MINTH GROUP, Huayang, NEXTEER, and KEBODA are expected to become partners of Xiaomi, providing core components for the YU7, including seats, glass, exterior parts, smart cockpits, steering systems, and automatic transmissions

- Xiaomi has officially announced its first SUV model, the YU7, expected to launch in mid-2025, following a successful delivery of 100,000 vehicles.  
- UBS forecasts that with the introduction of the YU7 and increased production capacity, Xiaomi's total vehicle sales could double to 260,000 units in 2025.  
- Key suppliers for the YU7 include Top Group and Fuyao Glass, which are anticipated to provide essential components, reflecting Xiaomi's commitment to high interior quality.

Who might be the supplier of Xiaomi YU7?