Despite only launching its first electric vehicle (EV) in March 2024, Xiaomi sold more EVs last year than Ford and General Motors (GM).

The feat highlights American automakers’ challenges in a rapidly electrifying Chinese market, where local players increasingly dominate.

Mostly known for its smartphones and other consumer electronics, Xiaomi debuted its first EV, the SU7 Series, in March 2024.

According to a company release, Xiaomi sold 136,854 vehicles in 2024.

In contrast, Ford’s global EV sales for the year were over 97,000, and GM’s were just over 114,400.

Xiaomi delivered strong sales numbers even though the SU7 is only available in China.

But then again, the Chinese auto market is roughly the size of all European and American markets combined.

In other words, Chinese companies don’t necessarily need to export cars to survive. But global auto brands that don’t sell well in China miss out on a huge opportunity.

As Xiaomi and other Chinese companies have expanded their EV offerings in recent years, American firms have lost out, none more so than Tesla.

In the early days of China’s EV boom, Tesla was unrivaled in the premium market, with BYD and others focusing on more affordable models.

However, Xiaomi’s SU7 is among a new generation of home-grown EVs that outperform equivalent Tesla models at a lower cost.

The new competition has had a discernable impact on Tesla’s numbers.

After five consecutive months of declining sales, Tesla shipments to China fell to just 30,688 vehicles in February, the lowest monthly figure since July 2022.

Weak demand from China isn’t just a problem for Tesla. Without a competitive EV range, Ford’s sales in the country fell in seven out of the last eight years for which data is available.

Bank of America Securities analyst John Murphy has even warned that the “Big Three” Detroit automakers should cut their losses and “exit China as soon as they possibly can.”