Xiaomi expects to spend more than RMB 200 billion (USD 29.9 billion) on R&D over the next five years, covering chips, operating systems, artificial intelligence, embodied intelligence, and other advanced technologies, CEO Lei Jun said on October 21. Lei is also the company’s founder and chairman.
Speaking at the 2026 World Intelligent Connected Vehicles Conference, Lei said Xiaomi had invested RMB 105.5 billion (USD 15.8 billion) in these fields over the preceding five years.
Xiaomi decided to build cars in early 2021, and its first model reached the market in April 2024, Lei said. Over two and a half years, it has delivered more than 800,000 vehicles at an average selling price above RMB 260,000 (USD 38,900).
The company’s SkyNomad N70 and N90 models are designed as homes on wheels, with spacious, reconfigurable interiors. The series emphasizes interior space, while the SU7 and YU7 focus more on the driving experience.
“Building cars is a marathon,” Lei said. Drawing on China’s strengths in connected smart products and services, Xiaomi aims to pursue a distinctively Chinese approach to innovation and support steady progress in the automotive sector.
Lei set out three priorities for intelligent connected vehicles.
1. From separate smart functions to vehicle-wide intelligence
Lei said advances in AI are moving vehicles from isolated smart functions toward intelligence across the whole car. Vehicles are becoming simplified physical platforms for embodied intelligence, he argued. Rather than simply adding features, a unified, powerful foundation model should improve the experience by effectively replacing the vehicle’s brain.
Lei said Xiaomi’s MiMo 2.6 foundation model, released in September, ranked fifth globally among foundation models and first among open-source models at launch. He expects further advances in AI to improve the experience of using intelligent connected vehicles.
2. Safety as a prerequisite
Lei said safety had been Xiaomi’s overriding principle since it began building cars: without it, other innovations would be meaningless. Over the past year, the company has set out to build what it calls the safest cars in their respective classes.
Xiaomi has established an independent vehicle safety research center to analyze problems from end to end and use its findings to guide improvements. A separate vehicle-wide safety department designs safety systems for the entire car.
A dedicated department led by safety experts coordinates safety matters, while Xiaomi has strengthened the role of its automotive safety committee. An automotive safety advisory committee draws on specialists from industry, universities, and research institutions.
Xiaomi’s automotive safety teams reportedly have more than 3,000 members. Its tests include large-scale road trials, a Beijing-to-Shanghai range test, and a 24-hour endurance challenge. The company has also live streamed multiple vehicle teardowns to show internal build quality, workmanship, and safety details.
3. Connecting people, cars, and homes
Lei argued that the next phase of competition in intelligent connected vehicles would depend on the wider network of connected products and services, beyond the capabilities of any one car. He pointed to China’s comprehensive industrial supply chains, active AI innovation, and position as the world’s largest single market.
Xiaomi’s “Human x Car x Home” strategy links those products and services. The company said it has built the world’s largest consumer internet of things platform, with more than 1.1 billion AIoT devices connected worldwide as of the end of the second quarter.
Xiaomi has made more than 30 types of automotive hardware or interfaces available to outside partners. It is working with BYD, GAC Toyota, Great Wall Motor, Zhengzhou Nissan, and other automakers and developers to broaden the use of connected technology in travel.
This article was adapted based on a feature originally written by SY and published on IPO Zaozhidao. KrASIA is authorized to translate, adapt, and publish its contents.
Note: RMB figures are converted to USD at rates of RMB 6.69 = USD 1 based on estimates as of October 23, 2026, unless otherwise stated. USD conversions are approximate and, where appropriate, rounded for ease of reference. They may not fully match prevailing exchange rates.