Senior Director, Brand & Product Marketing

👩‍🍳 How we use AI at Tech in Asia, thoughtfully and responsibly.🧔‍♂️ A friendly human may check it before it goes live. More news hereXiaomi CEO, Lei Jun, expects the company’s EV division to become profitable in the second half of 2025, according to a company spokesperson.In Q1 2025, Xiaomi reported a loss of 500 million yuan (US$69.5 million) from its smart EVs, AI, and other new ventures.Despite the loss, revenue from the EV segment reached 18.1 billion yuan (US$2.5 billion) during the same period.The company plans to launch its second EV model, the YU7, in July 2025.🔗 Source: Reuters🧠 Food for thought1️⃣ Xiaomi’s profit projection stands out in a brutal EV marketLei Jun’s statement about EV profitability comes amid an intensely competitive Chinese market where most manufacturers are struggling to maintain margins.China’s EV landscape features over 94 brands and 300 models competing for market share, creating significant pricing pressure across the industry 1.Recent aggressive price cuts, particularly from market leader BYD, have squeezed profit margins sector-wide, with analysts noting that only a few companies including BYD, Tesla, and Li Auto have managed to maintain profitability 2.Against this challenging backdrop, Xiaomi has reported a 15.4% gross profit margin for its EVs, which is competitive compared to established players 3.The company’s SU7 sedan has gained traction with 27,307 units delivered by August 2024, positioning the company to potentially reach its target of 100,000 units by November 3.2️⃣ Strategic diversification from phones to cars represents a classic tech expansion playXiaomi’s move into electric vehicles follows a pattern seen with other tech giants seeking growth beyond saturated core markets, but with distinctly aggressive investment.The company committed $10 billion over a decade to its EV business—a substantial bet representing a significant portion of its resources compared to its $9.8 billion quarterly revenue in late 2022 4, 5.This diversification strategy was bolstered by the 2021 acquisition of autonomous driving startup Deepmotion for approximately $77.37 million, demonstrating Xiaomi’s commitment to building proprietary technology rather than merely assembling vehicles 4.Unlike many EV startups that struggle with manufacturing, Xiaomi brings substantial experience in mass production and supply chain management from its smartphone business, potentially giving it advantages in scaling efficiently 6.The SU7’s competitive pricing at approximately $29,900—about $4,000 less than Tesla’s Model 3 despite offering greater range—demonstrates how Xiaomi is applying its “high specs, low price” smartphone strategy to disrupt the automotive market 7.3️⃣ China’s shifting EV policies are forcing companies toward operational efficiencyThe profitability Xiaomi projects comes as government subsidies that fueled China’s EV boom are being systematically reduced, forcing manufacturers to focus on operational excellence.Chinese government support for EVs has been massive, with cumulative spending estimated at $230.9 billion from 2009 to 2023, creating artificial market conditions that are now normalizing 8.Direct subsidies per vehicle have fallen dramatically from $13,860 in 2018 to just $4,800 in 2023, compelling manufacturers to find efficiencies rather than rely on government support 8.Market growth is expected to slow significantly from 42% in 2024 to 20% in 2025 as the sector matures, likely triggering further consolidation among the hundreds of EV-related enterprises 9, 10.Xiaomi’s focus on manufacturing efficiency and integration with its existing ecosystem of smart devices appears strategically timed as the market transitions toward a phase where operational excellence will determine survivors 11.Recent Xiaomi developments

In this week’s edition of InnovationRx, we look at how Hinge Health’s successful IPO may be a trendsetter, Indian billionaire Kiran Mazumdar-Shaw’s ‘biosimilars’ business, RFK’s changes to Covid vaccine guidance and more. To get it in your inbox, subscribe here. Lex Annison, COO of Hinge Health, Gabriel Mecklenburg, executive chairman, Daniel Perez, CEO, Bianca Buck, head of investor relations, James Budge, CFO, and Jim Pursley, president, ring a ceremonial bell on the floor of the New York Stock Exchange during the company's IPO.© 2025 Bloomberg Finance LPDigital physical therapy company Hinge Health had its initial public offering last week, opening at $37.85. It’s currently trading over 10% above that price, giving it a market cap of over $3.2 billion (though this is about half of its peak valuation in 2021). The company’s product portfolio offers personalized care plans for patients with chronic conditions, as well as software that coordinates these plans with a patient’s doctor.Virtual chronic care company Omada Health also filed to go public earlier this month, and that plus the success of Hinge’s IPO may begin a new “wave of digital health companies seeking a public listing following the COVID-19 pandemic,” Pitchbook analyst Aaron DeGagne wrote in a note last week. He identified several companies, including Spring Health, Zocdoc, Noom and Headspace, that “will be closely watching Hinge Health’s IPO outcome” to decide whether to start the process of going public this year.Meet India’s Self-Made Biologics Brewmaster BillionaireKiran MazumdarGuerin Blask for Forbes

Mastercard has launched its Cyber Resilience Center, an initiative that brings together key players from the financial sector to foster collaboration and support shared goals in building a secure commerce and payment ecosystem in the Kingdom. This is Mastercard’s first initiative in the Middle East, extending the company’s global network of cyber resilience centers which includes locations in Europe and the United States.Riyad Bank has joined as the first partner and will collaborate with Mastercard on training programs, risk evaluations, and the adoption of global cybersecurity standards.The center marks a pivotal milestone in reinforcing the Kingdom’s cybersecurity infrastructure, enabling stronger collaboration to protect its fast-evolving digital economy.With cyber threats becoming more sophisticated and persistent, the center will provide a platform to equip organizations with the tools, expertise, and strategies needed to detect, prevent, and respond to risks in real-time. It will also serve as a catalyst for expanding local cybersecurity talent and fostering a culture of continuous learning and improvement.At the heart of the initiative are three core pillars:Education & Training: Supporting the development of local cybersecurity talent by working with financial institutions to introduce certifications in Arabic and host knowledge-sharing sessions.Standards & Best Practices: Building trust in the digital ecosystem by setting measurable cybersecurity benchmarks and enabling institutions to track progress through clearly defined improvement targets.Risk Assessments & Readiness: Enhancing preparedness through cyber defense exercises, scenario planning, and threat-casting workshops to anticipate and mitigate evolving risks.Mastercard’s Cyber Resilience Center aligns with the objectives of Saudi Vision 2030, contributing to the Kingdom’s commitment to secure digital transformation, improved public services, and a robust environment for technology-led innovation. Mastercard has invested $10.7 billion in cybersecurity innovation over the last six years, assessing evolving threats, protecting customers and enhancing trust across the digital ecosystem. According to the 2025 Digital Trust Insights Survey, 55% of Middle East organizations plan to prioritize digital and technology risk mitigation over the next year, compared to 53% globally.“At Riyad Bank, safeguarding customer trust is central to everything we do. In a rapidly evolving cyber threat landscape, our collaboration with Mastercard through the Cyber Resilience Center is a testament of our proactive approach to cybersecurity