• Xiaomi Auto signed MoUs with an initial group of 8 German automotive dealer groups and will enter the European market in 2027.
• The MoUs mark the first step in building its European retail and service network, with Xiaomi planning to expand its local dealer partnerships.

Xiaomi Auto, the automotive arm of Xiaomi (HKEX: 1810), said on Thursday that it had signed Memoranda of Understanding (MoUs) with an initial group of 8 German automotive dealer groups.

The signing ceremony took place during IFA Berlin 2026 consumer electronics show, laying the groundwork for Xiaomi Auto's retail and service network ahead of its entry into European markets, including Germany, in 2027.

The initial 8 partners are:

Ernst Dello GmbH & Co. KG, Autohaus Dinnebier GmbH, Emil Frey Germany, Fett & Wirtz Automobile GmbH & Co. KG, Hahn Automobile GmbH + Co. KG, LUEG Mobility GmbH, Penske-Jacobs Innovation GmbH, and SPT Avior SE & Co. KG.

Xiaomi Auto said in a statement that the groups have extensive operating experience in Germany and elsewhere in Europe, as well as expertise in the sales and servicing of premium automotive brands.

Germany will be the starting point for Xiaomi Auto's European retail network. The company plans to establish partnerships with more European dealers as its 2027 launch approaches.

The documents are MoUs rather than definitive dealership agreements. Xiaomi did not disclose the number of stores planned by each group, their sales territories, investment amounts or partnership terms.

The company has also yet to disclose the first models it will sell in Europe, local pricing or a more specific launch and delivery timetable for 2027.

Yu Liguo, vice president of Xiaomi Auto and head of its international business department, said the company plans to make long-term investments in Europe, with local partners central to its expansion strategy.

Yu said Xiaomi Auto will draw on its European R&D center in Munich and a growing sales and service network to provide products and services to local customers.

The signing came about 1 week after Xiaomi Auto launched its international website and overseas social media accounts, indicating that preparations for its European sales network are accelerating.

The website went live on August 26 and explicitly stated that Xiaomi Auto would enter European markets, including Germany, in 2027.

It also includes a dealer and distribution inquiries portal through which prospective dealers and distribution partners can contact the company.

The move from opening partnership inquiries to signing the initial MoUs means Xiaomi Auto's European channel preparations have entered the preliminary partnership stage. However, the website still lacks a vehicle configurator, local pricing or a purchasing portal.

Xiaomi Auto said its cumulative deliveries in the Chinese mainland have exceeded 700,000 vehicles since it delivered its first car in March 2024.

The Xiaomi SU7 Series surpassed 500,000 cumulative deliveries within 28.5 months, while the Xiaomi YU7 attracted more than 240,000 lock-in orders within 18 hours of its launch.

Xiaomi aims to extend its growth momentum in China into overseas markets. Europe will be the first major market in the international expansion of its automotive business.