Xiaomi's Nürburgring Base and RMB 200 Billion R&D Pledge Sharpen Its Auto Bet

Xiaomi has opened a workshop beside the Nürburgring's GT circuit, giving its automotive programme a physical European foothold just as chief executive Lei Jun laid out a sharply higher research budget. The two developments, confirmed separately this week, sketch a company deepening its commitment to vehicles while asking investors to look past a volatile stretch of trading in Hong Kong.

The stock rose 2.6% on Friday amid a broad recovery in Hong Kong-listed automakers, with BYD, Li Auto and CATL also advancing. Reports linked the gain to Lei Jun's remarks on the company's ecosystem and technology spending. The rebound came a day after Xiaomi had numbered among the market's decliners, pressured by steep losses at CATL, slower earnings growth there and softer Chinese car sales.

A Five-Year R&D Target Above the Last One

Speaking on Wednesday at the World Intelligent Connected Vehicles Conference, Lei put a figure on the company's technology push: more than RMB 200 billion will go into research and development of core technologies over the next five years. That compares with RMB 105.5 billion spent on the same category over the past five years.

Lei used the same platform to report that Xiaomi has delivered more than 800,000 vehicles in two and a half years, at an average selling price above RMB 260,000.

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Nürburgring Workshop Replaces a Rented Site

The new workshop sits next to the GT track, according to auto chief technology officer Hu Zhengnan. It offers more space than the site Xiaomi previously leased, along with parking, a fast-charging station and direct access to the circuit. Facilities for drivers and guests are included.

For shareholders, the distinction between the confirmed site and speculation about future models matters. The infrastructure is established fact; it implies neither a model changeover nor a sales date. Photographs show a camouflaged vehicle resembling the SU7 Ultra, which reports suggest could be a new generation — an interpretation that remains conjecture rather than a product announcement. Images of test cars published in September showed a large rear wing, and reports of a two-seat or two-door layout and a limited "SU7 Ultra Extreme" variant are likewise unconfirmed. Claimed aerodynamic improvements should not be treated as fixed specifications.

Buybacks and a Share Issue

Xiaomi also disclosed the issue of 31,000 new shares to participants in an equity programme at HKD 1.47 apiece on Friday. The day before, it repurchased 4,086,000 of its own shares for roughly HKD 105 million, at prices between HKD 25.70 and HKD 25.92, with the stock to be cancelled. A further 1,900,000 shares were bought back on Wednesday for a total of HKD 50.951 million.

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Smartphone Pipeline: One Confirmed, Others Not

On the handset side, the Redmi K100 appeared today in the Geekbench performance database — a firmer marker than the rumours circulating about other lines. Xiaomi has confirmed neither specifications, timing nor regional availability for the Xiaomi 18T and 18T Pro.

Taken together, the week's news offers evidence of ongoing development and site activity: an opened Nürburgring workshop and a confirmed Redmi appearance. New car and phone variants remain partly speculative and should not yet be counted as assured revenue drivers.

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