Chinese technology company Xiaomi is preparing to enter the Australian automotive market in 2028, following the introduction of its electric vehicles in China.

The world's third-largest smartphone seller entered the automotive industry three years ago with the SU7 sedan, whose design resembles the Porsche Taycan, and the YU7 SUV, which has styling similarities to the Ferrari Purosangue.

With China's new-car market slowing, Xiaomi is pursuing overseas opportunities, including Australia. The company has started recruiting for Sydney-based positions to oversee its Australian operations, including executives responsible for local regulatory advice and establishing a financing division.

Although Xiaomi has not confirmed its Australian launch timeline, it reportedly informed investors earlier this year of plans to enter right-hand-drive markets from the first half of 2028. The publication has contacted Xiaomi for comment.

Before entering right-hand-drive markets, Xiaomi is scheduled to begin sales in left-hand-drive European markets in the second half of 2027, starting with Germany, the region's largest automotive market. The initial export line-up is expected to include the SU7 sedan and YU7 SUV, which compete with the Tesla Model 3 and Model Y, respectively.

In China, Xiaomi has also introduced two conventionally styled SUVs, the Skynomad N70 and N90, which use petrol engines as range extenders to charge their batteries and power their electric motors.

According to overseas reports, Xiaomi plans to prioritise mid-to-high-end models in export markets before expanding into more affordable segments. This reverses the strategy adopted by companies such as BYD, MG and Chery, which entered markets including Europe and Australia with lower-priced vehicles before expanding into higher-priced segments.

The range-topping SU7 Ultra uses three electric motors producing a combined 1,138 kW. It has a claimed 0-100 km/h acceleration time of 1.98 seconds and a top speed of 350 km/h. Xiaomi has also established a technical centre in Germany and recruited former BMW M engineers to develop performance models, including the YU7 GT, which has claimed the Nürburgring lap record for SUVs.

In September, Xiaomi ranked as China's ninth-best-selling car brand, with the SU7 placing 12th and the YU7 30th in the country's model sales rankings. Sales also included deliveries of the Skynomad range. However, Xiaomi's automotive sales declined by 4.6% year-on-year, and its automotive operations have yet to become profitable.

The company recorded an average loss of AUD 5,300 (US$ 3,720) per vehicle delivered in the second quarter of 2026 (April to June), compared with approximately AUD 7,960 in the preceding quarter and AUD 800 in the second quarter of 2024.

Xiaomi reports its automotive division under the 'other new initiatives' category in its financial results, with its automotive operations believed to account for the majority of the figures reported under this category.