Xiaomi builds dealer network for German market entry
Xiaomi is rapidly advancing plans for its German market launch. The Chinese conglomerate has signed agreements with eight German trade groups for the distribution and servicing of its electric cars starting in 2027.
As reported by Handelsblatt, Xiaomi signed letters of intent with eight German automotive retail groups at the ongoing IFA in Berlin. These agreements are intended to form the basis of a comprehensive sales 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 suggests that Xiaomi will at least partially rely on established dealer structures in Germany. The exact number of planned sales and service locations remains unknown, and the agreements are currently non-binding letters of intent.
The market launch itself has been announced for some time. In March 2025, Xiaomi President William Lu confirmed for the first time that the company plans to sell its electric vehicles outside China starting in 2027. Europe was early on identified as a key target market. In September of last year, Xiaomi also opened its first research and development centre for EVs outside China.
The Munich location is not only dedicated to vehicle development and adaptation to European requirements. At its opening, Xiaomi was already seeking employees for retail operations, vehicle logistics, homologation, and after-sales services. The recently agreed partnerships with German retail groups thus represent the next concrete step in building the sales organisation. Xiaomi has only been active as a car manufacturer in China since spring 2024. Following the launch of the SU7, the company expanded its offering with the YU7 electric SUV. According to the company, more than 700,000 vehicles have since been delivered. High demand in the domestic market had initially delayed earlier international expansion.
However, the rapid expansion of the automotive business continues to incur high costs for Xiaomi. In the second quarter of 2026, the “Smart EV, AI and Other New Initiatives” division recorded an operating loss of 2.6 billion yuan (approximately €315 million euros), despite increasing vehicle deliveries. However, the loss narrowed compared to the first quarter. At the same time, Xiaomi continues to invest heavily in its automotive activities, which now also include building the European sales network.
It remains unclear which models Xiaomi will actually offer in Germany in 2027. Prices, the exact number of sales outlets, and the timing of the sales launch within the year are also still unknown. While the dealer agreements make the already announced European launch more concrete, they do not yet answer key questions about the local offering.