Xiaomi is building a distributor network for its launch in Germany
Xiaomi clarifies its planned market entry in Germany. To handle the distribution and service of its electric vehicles starting in 2027, the Chinese company has reached agreements with eight German dealership groups.
The Chinese manufacturer is accelerating preparations for its entry into the German automotive market. As reported by Handelsblatt, Xiaomi signed letters of intent with eight German auto dealership groups at the current IFA exhibition in Berlin. These are intended to form the basis for a comprehensive distribution and service network.
The partners include Emil Frey Germany, the Ernst Dello Group, Autohaus Dinnebier, Hahn Automobile, the LUEG Mobility Group, Fett & Wirtz, SPT Avior, and Penske-Jacobs. This indicates that Xiaomi will rely at least in part on established dealer networks in Germany. The number of sales and service locations planned is not yet known. Moreover, these agreements are currently only statements of intent.
The market launch itself has been announced for some time. Xiaomi President William Lu first confirmed in March 2025 that the company intends to sell its electric vehicles outside China starting in 2027. Europe has long been considered a key target market. Last September, Xiaomi also opened its first electric vehicle R&D center outside China in Munich.
The facility serves not only for vehicle development and adaptation to European requirements. Even at its opening, Xiaomi sought employees for roles such as retail operations, vehicle logistics, certification, and after-sales support. The partnerships agreed upon now with German retail groups represent the next concrete step in building out its distribution network. In China, Xiaomi has only been operating as an automaker since early 2024. Since the launch of the SU7, the company has expanded its lineup to include the electric SUV YU7. According to the company, over 700,000 vehicles have been delivered so far. High demand in its home market initially slowed down its earlier international expansion.
The rapid expansion of Xiaomi’s automotive business remains associated with high costs. In the second quarter of 2026, the “Smart EV, AI and Other New Initiatives” segment recorded an operating loss of 2.6 billion yuan (around 315 million euros) despite increasing vehicle deliveries. However, the deficit decreased compared to the first quarter. Meanwhile, Xiaomi continues to invest heavily in its automotive activities, which now include establishing a distribution network in Europe.
It remains unclear which models Xiaomi will actually offer in Germany in 2027. Prices, the exact number of sales outlets, and the timing of market entry this year are also not yet known. The dealer agreements make the previously announced European launch more concrete, but they still do not answer key questions about the product lineup in this region.