Xiaomi EV to Double Daily Production Hours in June, Anticipating Surge in Monthly Output: Report.
Reports indicate that Xiaomi EV, the automotive arm of Chinese tech giant Xiaomi (HKG: 1810, OTCMKTS: XIACY), is gearing up for a significant production boost. Set to implement a double-shift production model starting next month, the company aims to extend its daily manufacturing duration from 8 to 16 hours at its Beijing facility, with an expected monthly capacity increase to nearly 20,000 units.
According to sources cited by local media outlet Cailian, Xiaomi EV’s Beijing factory will transition to a double-shift operation come June. This move comes amidst heightened demand for its vehicles, prompting the need for increased output.
Xiaomi EV’s founder, chairman, and CEO, Lei Jun, previously mentioned the factory’s capability to churn out 40 Xiaomi SU7s per hour, equating to a new vehicle every 76 seconds. With the upcoming shift adjustment, the monthly production capacity is projected to escalate significantly, reaching close to 20,000 units.
Preparations for this production surge have been underway, with recent reports indicating a spike in recruitment efforts to bolster the production workforce. Notably, Xiaomi EV had already laid the groundwork for double-shift production during the recent Labor Day holiday, leveraging the time for equipment maintenance and enhancements to enhance delivery capabilities.
Furthermore, the company is actively engaging its upstream suppliers to scale up parts provision. Orders from suppliers have surged by approximately 80%, with specific categories experiencing notable spikes, as mentioned by Wallstreetcn.
In parallel, plans for expansion are underway, with the second phase of the Xiaomi EV factory slated for construction in 2024 and completion by 2025. Located in Yizhuang, Beijing, the factory’s total planned annual capacity is set at 300,000 units, divided into two phases of 150,000 units each.
In a recent update, Xiaomi EV announced the successful delivery of its 10,000th SU7 vehicle and reiterated its commitment to achieving a 100,000-unit delivery target for the year. The company officially introduced the SU7 on March 28, offering various trims and pricing tiers.
However, despite strong demand, customers may face extended wait times for delivery, with current order fulfillment cycles ranging from 30 to 37 weeks, as observed by CnEVPost.
