Xiaomi, Geely, China, Nio show resilience despite tariffs

Xiaomi Corp., Geely Automobile Holdings Ltd., NIO Inc. and Xpeng Inc. will show how resilient China’s electric-vehicle (EV) sector is to a stagnant domestic economy and tariffs in the US and European Union.

All four firms delivered more vehicles in 2024. China auto exports had a buoyant start to 2025, with 46 per cent growth in EV exports so far, Macquarie said.

Retail car sales in China rose 26 per cent in February from a year earlier, with a 85 per cent jump in sales of new energy vehicles, according to estimation by the China Passenger Car Association.

The country’s auto executives offered a range of ambitious policy proposals to cement China’s position as a global powerhouse in transportation at the annual National People’s Congress in Beijing.

Measures included artificial intelligence-controlled vehicles and flying cars, with aggressive overseas expansion ambitions.

Xiaomi’s (1810 HK) fourth-quarter revenue likely surged 43 per cent, the fastest since 2021. Smartphone sales could see stronger growth this year as it pushes into the premium market traditionally dominated by Apple Inc., while benefiting from China’s smartphone subsidies, BI said.

Its EV business will also continue to lift earnings, as it saw popular demand with the SU7 Ultra model.

Xpeng (XPEV US) likely narrowed its net loss in the fourth quarter, helped by stronger vehicle sales, consensus shows.

Its vehicle deliveries almost doubled from the preceding quarter thanks to the cheaper Mona M03 and P7+ sedans, BI said. Citi expects upside potential for Xpeng “if it achieves decent progress in the artificial intelligence and robotics field.”

Geely Auto’s (175 HK) full-year revenue likely continued picking up pace, consensus shows.

The Chinese EV maker announced the launch of its brand and the EX5 SUV model in Australia and New Zealand, with a plan to enter markets including the UK, Brazil and South Africa this year.

NIO’s quarterly losses may have remained steady as the sales mix included a greater share of the cheaper Onvo brand. Sales volumes rose 45 per cent, according to monthly disclosures, but a price war in its home market may limit revenue growth.

Markets will also watch for commentary on the impact of EU tariffs, as well as plans to deal with President Donald Trump’s levies. The company’s aim to double vehicle deliveries in 2025 looks ambitious and it may be a challenge to shrink losses, BI said.