Xiaomi ramping up hiring for Phase 2 of electric vehicle plant amid capacity strain caused by YU7 launch
In a remarkable display of demand, Xiaomi's electric vehicle (EV) company has announced that its upcoming phase 2 factory, referred to as the F2 factory, is nearing completion and is expected to commence operations in July 2025. This expansion is crucial for Xiaomi to meet the high demand for its YU7 SUV, a model that has seen extraordinary success since its launch.
The YU7 has garnered over 240,000 locked-in orders within 18 hours of its launch, overwhelming current production capabilities. This has resulted in significant waiting periods for customers, with delivery times ranging from 38 to 60 weeks. However, with the completion of the phase 2 factory, Xiaomi aims to significantly increase YU7 production to meet the high demand.
The YU7 is positioned as a competitor to Tesla's Model Y, and its popularity is causing a strain on Xiaomi's current production capabilities. The company's phase 1 factory, located in Yizhuang, southeast of Beijing, has an annual production capacity of 150,000 units. To address this issue, Xiaomi has been aggressively recruiting workers, including general workers, operators, and trailer drivers, to ramp up production capacity and reduce wait times for the YU7 SUV.
Employees at the F2 factory will work in two shifts, with an 11-hour workday and a daily wage of RMB 230 ($32). The second phase of the iAomi EV factory project is expected to be completed by mid-June and officially commence production in July-August, according to local media reports.
Meanwhile, iAomi EV has also been making strides in its overall production. Last month, the company delivered over 25,000 vehicles, marking the ninth consecutive month with monthly deliveries exceeding 20,000 units. This strong performance is a testament to the growing popularity of Xiaomi's EV offerings.
However, the surge in orders for the YU7 has left iAomi EV facing unprecedented factory capacity constraints. To alleviate this, a subsidiary of iAomi EV has secured a new plot of land in Beijing, which is believed to be intended for the third phase of the iAomi EV factory.
For customers who order the YU7 now, delivery wait times remain lengthy, with a wait of 38-58 weeks. However, some YU7 SUV vehicles have already been produced, and consumers can lock in orders directly for delivery within 1-5 weeks. The company has not yet announced when deliveries of customized YU7 models will begin, but its mobile app suggests this will occur in August.
As Xiaomi prepares to launch the F2 factory, it is expected to maintain its competitive position against rivals like Tesla, Xpeng, and Nio, who are reacting to Xiaomi’s strong market entry with incentives and promotions. The expansion of the F2 factory is a significant step for Xiaomi in its quest to meet the high demand for the YU7 SUV and maintain its competitive edge in the EV market.
- The YU7, a competitor to Tesla's Model Y, is causing a strain on Xiaomi's current production capabilities due to overwhelming demand.
- To meet the high demand for the YU7, Xiaomi aims to significantly increase production with the completion of the F2 factory, expected to commence operations in July 2025.
- With the F2 factory expanding, Xiaomi plans to address factory capacity constraints and reduce wait times for its YU7 SUV.
- Employees at the F2 factory will work in two shifts, with an 11-hour workday and a daily wage of RMB 230 ($32).
- iAomi EV, Xiaomi's EV company, delivered over 25,000 vehicles last month, marking the ninth consecutive month with monthly deliveries exceeding 20,000 units, a testament to the growing popularity of its EV offerings.
- In an effort to alleviate factory capacity constraints, a subsidiary of iAomi EV has secured a new plot of land in Beijing for the potential third phase of the iAomi EV factory.
