Xiaomi Auto accelerates its entry into Europe and begins setting up its dealership network

Xiaomi Auto has signed a series of memorandums of understanding with eight German dealership groups as a first step before its entry into the German market. With this move, the Chinese company is laying the groundwork for expanding into Europe, a process that will begin next year, though no detailed timeline has been released yet.

Instead of adopting a direct sales model with its own stores like Tesla, Xiaomi will implement a more traditional business strategy, following the example of other Chinese manufacturers such as BYD, Chery, or Geely. Their rapid expansion in Europe is largely attributed to their partnerships with local dealership groups to quickly establish a network of sales and after-sales service outlets.

Although Germany will be the first country to receive Xiaomi’s cars, its commercial presence will eventually expand to other European countries. It is unclear whether Spain is among them, as while our market has the highest sales share of Chinese brands in the region, it also ranks at the bottom in terms of electric car registrations.

As the launch date in Germany approaches, Xiaomi will establish additional agreements with other distribution groups. The number of dealerships that will open has not yet been revealed. Nor has the launch schedule been announced, though it would not be surprising if the YU7 crossover were the first model to go on sale.

The R&D center in Munich is key to Xiaomi Auto’s European plans

Yu Liguo, vice president of Xiaomi Auto and head of the company’s international business division, says Europe will play a crucial role in its expansion strategy. Evidence of this is the opening of an R&D center in Munich, as well as the company’s interest in setting records at Germany’s Nürburgring circuit to strengthen its brand image.

In China, Xiaomi is focused on launching its sub-brand SkyNomad. While Xiaomi Auto concentrates on producing 100% electric vehicles (BEVs), its new division sells extended-range electric vehicles (EREVs), also known as series hybrid vehicles (where the internal combustion engine never drives the wheels directly).

Will SkyNomad models make it onto our roads? It’s too early to tell, but given the reluctance of some premium and luxury customers to switch to electric mobility, it wouldn’t be surprising if Xiaomi decides to expand its European lineup with SkyNomad vehicles, which could potentially be sold under its main brand.

Source | CnEVPost