Xiaomi Plans to Sell Electric Cars in Europe Next Year

Xiaomi, the Chinese company famous for smartphones and gadgets, is coming to European car markets. At a trade show in Berlin, Xiaomi Auto announced it will begin selling electric vehicles (EVs) in Europe next year, starting with Germany. There, it has signed up eight dealer groups to handle sales and service. For European drivers, this means another brand to choose from — and more competition among EV makers could push prices down or improve features.

But there is a major hurdle: EU tariffs. In 2023, the European Union started an investigation into Chinese government subsidies for EV makers and later imposed extra import taxes on Chinese-made EVs. Xiaomi didn't join that investigation because its first car launched only in March 2024, so it is likely to face the highest rate — an additional 35.3% on top of the standard 10% car import duty. That could make Xiaomi's cars noticeably pricier in Europe, reducing their appeal against cheaper local models or other Chinese brands that got lower tariffs.

Xiaomi isn't backing down. Its vice president, Yu Liguo, said the company plans long-term investment in Europe and already runs a research and development center in Munich. Partnering with local dealers is key, because European customers often prefer buying from nearby dealerships rather than direct online sales. Xiaomi declined to say whether it is negotiating with the EU to lower its tariff burden.

This move shows a broader trend: Chinese EV makers are pushing into Europe despite trade friction. For consumers, more rivals usually mean better choices and prices over time. For European automakers, it means tougher competition. The big question is whether tariffs will protect local jobs or just make Chinese EVs less affordable for families who want a cheaper electric car.