After a surprisingly strong debut and with the company’s EV segment poised to break even this year, however, the Beijing-based firm is now embarking on an ambitious push into another sector to challenge established competitors: the home appliances market.
Partly fuelled by Beijing’s aggressive subsidies to boost consumption, Xiaomi – which sold its first washing machine in 2018 – posted a nearly 114 per cent growth in its large home-appliances segment in the first quarter.
Its shipments of air conditioners and refrigerators both surged 65 per cent from a year ago, while shipments of washing machines doubled, according to a filing to the Hong Kong stock exchange in May.
Xiaomi’s executives reportedly aim to break into the industry’s top three in three years, banking on the company’s rapid rise. Its large home-appliance sales jumped over 56 per cent last year, outpacing the three leading players in the sector: Midea’s sales rose about 9 per cent, Haier’s increased less than 4 per cent, while Gree’s declined more than 4 per cent.
The company is targeting a market that Midea had valued at over 854 billion yuan (US$119 billion) in 2023 – or 36.5 per cent of the global total – making it the world’s largest. The Chinese market is set to grow at a compound annual rate of over 5 per cent from 2023 to 2027, outpacing the US at about 2 per cent and Europe at 1.4 per cent, according to Midea.
