From Lei Jun's Annual Speech, What Has Xiaomi Auto Changed?

On the evening of September 25, 2025, at the China National Convention Center in Beijing, Lei Jun stood on the stage of the annual speech for the sixth time. This time, his theme was "Change."

This is not an easy topic. Five years ago, Xiaomi had just crossed the 200 billion revenue threshold, but behind its rapid growth, it fell into a deep strategic confusion. Should it settle for the label of an "internet company," or should it resolutely turn around and dive into the deep waters of hardcore technology? Lei Jun and Xiaomi chose the latter.

The automobile is precisely the most symbolic battleground in this "change."

Source: Xiaomi

"Over the past five years, it has been a complete transformation for both Xiaomi and myself," Lei Jun said in his speech. "We have spent five years of down-to-earth effort reshaping the bones and soul of Xiaomi." Xiaomi Automobile has become the most impactful product of this transformation.

Change in Perception: From "Phone Company Making Cars" to "Global Performance Benchmark"

In 2021, when Xiaomi announced its entry into the automotive industry, it was met with skepticism from the outside world. "Can a smartphone company make cars?" "How can a newcomer challenge a century-old industry?" Even Lei Jun himself admitted that the initial goal "seems like the bravado of a young and inexperienced person in hindsight."

However, Xiaomi Motors did not choose a conservative follow-up strategy. Instead, from the very beginning, it aimed at the pinnacle of global performance—the Nürburgring Nordschleife.

"Porsche is a god in my heart. Can we build a car that can beat Porsche on the Nürburgring?" an engineer excitedly proposed in an online meeting. This seemingly crazy idea eventually became the starting point for Xiaomi's automotive performance genes.

However, challenging the Nürburgring is not an easy task.

In August 2023, Xiaomi first contacted the Nürburgring officials but sent over 20 emails without receiving any response. "The first question they asked was: As a Chinese mobile phone company, why do you want to come and set a record at the Nürburgring?" Lei Jun recalled during his speech.

It wasn't until three months later that Xiaomi's sincerity and technical plan impressed the other party. Even more dramatically, the testing day originally scheduled for October 2024 was completely ruined by two consecutive days of heavy rain.

"Running the Nürburgring, what is the second difficulty? The weather. It's an opportunity that relies on the weather," Lei Jun said.

Xiaomi did not give up. On October 28th, Xiaomi finally got a "chance at the Nürburgring"—just 10 minutes. It was precisely this lap that allowed the SU7 Ultra prototype to achieve the third-best result overall at the Nürburgring, and the production car set a new Nürburgring lap record for mass-produced electric vehicles.

"If it weren't for the deep passion and longing from the engineers' hearts, and if we hadn't always persisted and refused to give up, Xiaomi would never have been able to create such a miracle," Lei Jun sighed.

From being questioned to being revered, Xiaomi Automobile has changed the global automotive industry's perception of Chinese brands with tangible achievements.

Change product logic: from "crossing the river by feeling the ideal" to "following your own path."

If SU7 Ultra is the technological declaration of Xiaomi Auto, then YU7 is the embodiment of its market wisdom.

It was introduced that in the summer of 2022, when the SU7 was still in the critical development stage, the YU7 project quietly started. At that time, the Li Auto L9 became a phenomenon with its "TV refrigerator big sofa" design, prompting many car manufacturers to follow suit.

Xiaomi also had intense internal debates: should they follow market trends or stick to their own path?

"In the end, everyone had to come up with a gentleman's agreement: if the argument becomes unbearable, block each other for 24 hours, take a day to cool off, and then continue arguing," Lei Jun said with a smile.

Ultimately, Xiaomi chose the route of "designing a good-looking and well-driving SUV for drivers, while also considering family use." This is a risky decision—sporty SUVs have rarely succeeded in the mass market.

Xiaomi has used data to prove the correctness of its choice: YU7 family users account for 69%, and families with children account for 85%. "Even if you buy an SUV, most of the time it is still driven by one person," said Lei Jun.

What is even more impressive is that Xiaomi replaced the originally planned standard version with a range of 620 kilometers with the long-range Pro version of 835 kilometers at the last minute, and the price remained unchanged. "The procurement team almost cried in the bathroom," Lei Jun joked.

This action not only reflects Xiaomi's deep insight into user needs but also demonstrates its determination for "experience equality."

"Technological equality and experiential equality are Xiaomi's goals," Lei Jun emphasized repeatedly at the press conference.

Change Service Logic: From "Efficiency First" to "Craftsmanship"

If YU7 is a breakthrough at the product level, then "Xiaomi Customized Service" represents a fundamental change in service logic.

In an era where "efficiency is paramount," customized services seem to run counter to mass production. They require tailored solutions and a spirit of craftsmanship, posing significant challenges to supply chains, processes, and management.

"This service is very complex and costly. You need a dedicated design team, scarce materials, and many processes that require technicians to complete manually," Lei Jun admitted. "Only a few luxury car brands in the world can manage it."

Image source: Xiaomi

However, Xiaomi still chose to proceed. The amethyst car paint uses a double-layer clear coat and precision polishing process, taking 50 hours; the custom wheels require more than 20 cutting heads to be shaved for 11 hours, taking a total of 40 hours to complete.

"I also hope to allow more people to experience top luxury cars," Lei Jun said.

This service is limited to only 40 units per month, with a minimum order threshold of 100,000 yuan, marking Xiaomi's transition from "manufacturing" to "smart manufacturing + craftsmanship."

In the Xiaomi Auto Factory Store in Beijing, the custom service center covering over 400 square meters has become a space for direct dialogue between users and craftsmen. "You can even personally participate in the making of leather goods," Lei Jun introduced.

This "visible, tangible, and participatory" service model is not only a change in commercial logic but also a reconstruction of the relationship between brands and users.

Changing the underlying technology: from "single-point breakthrough" to "system reconstruction"

The changes in Xiaomi's automotive sector are not isolated product successes, but rather systematic breakthroughs based on underlying technology.

In 2025, Xiaomi officially released its self-developed 3nm chip, the Xuanjie O1, making Xiaomi the first company in mainland China and the fourth globally to have the capability to design using advanced 3nm process technology.

In the automotive sector, the SU7 series has become the best-selling sedan priced over 200,000, while the YU7 set an industry record by locking in 240,000 orders in just 18 hours.

More importantly, Xiaomi is gradually building a "full ecosystem of people, vehicles, and homes" through a technological closed loop. From smartphones to automobiles, and from home appliances to chips, Xiaomi is creating a user-centric, data-interconnected, and seamless intelligent ecosystem.

"We have firmly stepped from an internet company into the new battlefield of smart manufacturing," said Lei Jun. This change is not only an expansion of business scope but also a comprehensive reconstruction of technological logic, organizational capabilities, and strategic vision.

In the past five years, Xiaomi's R&D investment has increased from 9.3 billion yuan to 30 billion yuan, and the number of R&D personnel has doubled from 10,000 to 20,000. More importantly, Xiaomi has attracted a large number of "enthusiasts" like Acan.

Acan is Xiaomi's chief test driver. He grew up in a hometown repair shop, spent his college years immersed in car forums, and won multiple championships by practicing racing in his spare time. Upon learning that Xiaomi was making cars, he resolutely moved his entire family to join the team.

"It is precisely this group of passionate and ambitious engineers that gives Xiaomi Auto its soul," said Lei Jun.

The change in organizational culture is fundamental to Xiaomi's ability to continue innovating. From "Internet speed" to "hardcore endurance," and from "user participation" to "engineer culture," Xiaomi is forming a new organizational gene—maintaining agility while adhering to long-termism.

The Changes of the Future: Xiaomi Automotive's Next Five Years

Change has never stopped.

Lei Jun revealed in his speech that the YU7 has begun testing on the Nürburgring track and will continue to refine its chassis and driving control, aiming to become the "best-handling SUV."

Image source: Xiaomi

At the same time, the customization services will gradually expand the range of models and projects, in collaboration with top suppliers such as BASF and PPG, with a plan to launch 100 car paints within three years.

More importantly, Xiaomi will continue to promote "technology equity," ensuring that advanced technology is no longer the privilege of a few.

"Change itself is hope. The road can be walked again, dreams can be redone, and the future can be rewritten." Lei Jun said at the end of his speech.

Conclusion:In five years, Xiaomi Auto has changed the external perception of Chinese automobiles as "low-end followers," altered the industry habit of "blindly following trends" in product definitions, transformed the single value of "efficiency first" in service logic, and fundamentally changed the technological foundation and organizational genes of the company.

This further confirms that as long as one dares to break the deadlock and, any enterprise and individual has the opportunity to "reverse their fate."

As Lei Jun said, "From confusion to transformation, sometimes separated by mountains and rivers, sometimes only by a thin paper window."