Xiaomi Automobile has made waves in the automotive industry again! The first SUV model YU7 has been officially announced, and it is expected to launch in mid-2025.

Xiaomi is ambitious and has raised its annual sales target to 120,000 units after achieving the delivery of 100,000 units ahead of schedule. UBS Group released a Research Report on the 12th, forecasting that with the addition of the new model YU7 and increased production capacity, Xiaomi Automobile's total sales in 2025 are expected to double to 260,000 units.

The supplier lineup for YU7 is also gradually emerging. UBS Group believes that Ningbo Tuopu Group, FUYAO GLASS, Minth, Huayang, NEXTEER, and Keboda Technology are expected to become Xiaomi's partners, providing core components for YU7, including seats, glass, exterior trim, smart cockpit, steering system, and automatic transmission.

Among them, Ningbo Tuopu Group can provide components with a CPV (cost per vehicle) value of 5,000-8,000 yuan, demonstrating Xiaomi's high emphasis on interior quality.

Image source: Xiaomi Automobile official website

Xiaomi Automobile's booming sales have driven growth in the Industry Chain.

Since the launch of Xiaomi SU7 in April last year, sales have surpassed 110,000 units, achieving remarkable results.

Entering the fourth quarter of 2024, Xiaomi Autos has already begun to sprint. In October, a delivery target of 0.02 million was aimed for, with production plans for November and December exceeding 0.022 million vehicles each.

UBS Group expects that with the addition of the new model YU7 and the increase in production capacity, Xiaomi Autos' total sales in 2025 are likely to double, reaching 0.26 million vehicles.

Although the overall auto market may experience a slowdown in demand after the end of policy stimulus, UBS Group believes that brands targeting the mid-to-high end market, such as Li Auto, NIO and Xiaomi, will continue to maintain strong growth momentum, thereby providing growth flexibility for suppliers.

With the continuous expansion of Xiaomi's production capacity, suppliers are expected to receive more Orders, achieving rapid revenue growth. Especially in the core component fields such as Battery, Electric Machine, and Control System, suppliers will welcome new development opportunities.

UBS Group is Bullish on the emerging Electric Vehicle Industry Chain, with FUYAO GLASS, Huizhou Desay SV Automotive, and Ningbo Tuopu Group as the focus.

The report shows that compared to traditional joint ventures and overseas suppliers, UBS Group is more optimistic about companies that have close cooperation with emerging electric vehicle brands.

Specifically, companies like FUYAO GLASS, Huizhou Desay SV Automotive, and Ningbo Tuopu Group have become key focus areas for UBS Group.

• FUYAO GLASS: With its strong capacity in the global market, especially in the USA, FUYAO GLASS holds a leading position in the auto glass field. FUYAO GLASS can provide auto glass with a CPV exceeding 2,000 yuan.
• Huizhou Desay SV Automotive: As a leading Global Smart Automobile R&D company, Huizhou Desay SV Automotive has a deep technological accumulation in areas such as smart cockpits and intelligent driving, and overseas Orders continue to grow.
• Ningbo Tuopu Group: Established solid cooperative relationships with emerging technology companies such as Li Auto and Huawei, possessing core competitiveness in areas such as smart cockpits and chassis systems.

Emerging electric vehicle brands have significant advantages in technological innovation and market responsiveness, and their Industry Chain will also benefit from this trend. UBS Group believes that companies like FUYAO GLASS, Huizhou Desay SV Automotive, and Ningbo Tuopu Group, based on their advantages in technology and market aspects, are expected to occupy favorable positions in this rapidly developing market.