Xiaomi aims to enter the family and outdoor travel markets with SkyNomad PHEVs

Overview

This report focuses on Xiaomi's new SkyNomad plug-in hybrid vehicle series. Deutsche Bank believes the series marks Xiaomi's further expansion beyond its existing YU7 SUV and SU7 battery-electric sedan into incremental markets such as family cars, long-distance travel, and outdoor travel. The first model is expected to be the Kunlun N90 full-size seven-seat SUV, followed by the Kunlun N80 and Kunlun N70.

Core views

The core view is that the SkyNomad PHEV series will expand the addressable market for Xiaomi's automotive business and compete with SUVs such as BYD's “Formula Leopard” Ti7 and Ti9 through a lower-cost supply chain and more competitive pricing. Given the recent weakening in new orders, the report believes Xiaomi may adopt more aggressive pricing to achieve its full-year sales target.

Analysis framework

The report evaluates the commercial impact of the SkyNomad series from the perspectives of product positioning, model planning, supply-chain costs, competitor price bands, order trends, and delivery forecasts, and compares it with Xiaomi's existing BEV models and related BYD SUV products.

Methodology notes

• equity_research12-month TSR rating framework

  Buy rating

  Deutsche Bank's Buy/Hold/Sell ratings are based on a 12-month total shareholder return perspective. TSR includes the change in the share price from the current price to the target price and expected dividend yield.

• product_strategyProduct matrix expansion analysis

  Greenfield market expansion

  The report views SkyNomad as a new category through which Xiaomi is expanding from high-performance BEVs into family, long-distance travel, and outdoor travel PHEV scenarios.

• demand_trackingOrder momentum monitoring

  Weekly new-order trend

  The report uses Thinkercar's new-order data for the past four weeks to monitor demand changes and concludes that the new models may require more aggressive pricing.

Asset mapping & comparison

Structured mapping from thesis to named assets (strengths, weaknesses, peers, risks).

• Xiaomi (01810.HK)

  Research subject; the SkyNomad PHEV series is expected to broaden the sources of automotive business volume.

  Strengths

  Strong brand and smart ecosystem foundations; PHEV products can fill gaps in family, long-distance, and outdoor travel scenarios. The use of more cost-efficient battery suppliers such as Sunwoda and CALB may support lower pricing.

  Weaknesses

  Recent new orders have weakened, declining 93% year over year in the first week of July; the new PHEV series has not yet been delivered, and mass production and market feedback remain to be validated.

  Comparison

  The report differentiates the SkyNomad PHEV from Xiaomi's existing YU7 and SU7 BEV series in terms of positioning and believes it will compete with BYD's “Formula Leopard” Ti7 and Ti9 SUVs.

  Risks

  Pricing below expectations, delivery delays, weaker-than-expected demand, intensified competition, and supply-chain execution risks.

• BYD “Formula Leopard” Ti7/Ti9

  Competitive reference; SkyNomad is expected to compete in the RMB 200k-450k price band.

  Strengths

  First-mover and scale advantages in new energy SUVs and plug-in hybrids.

  Weaknesses

  The report does not elaborate on specific weaknesses.

  Comparison

  SkyNomad is positioned as a family and outdoor travel PHEV product competing with the Ti7 and Ti9.

  Risks

  If Xiaomi adopts an entry price below RMB 200,000, it could intensify competitive pressure in the same price band.

Key data

• RatingBuyDisclosed on the report cover.
• Target priceHKD 67.00Disclosed on the report cover.
• Current priceHKD 23.10As of 7 Jul 26.
• 52-week rangeHKD 59.45-21.42Disclosed in the table on the report cover.
• Expected SkyNomad price bandRMB 200k-450kThe report expects the series to be positioned below the YU7 and SU7 BEV series.
• Potential entry priceBelow RMB 200,000Given recent weak orders, the report believes Xiaomi may adopt aggressive pricing.
• 2026 PHEV delivery forecast150,000 unitsThe report forecasts full-year deliveries of PHEV models.
• New orders over the past four weeksApproximately 5.0k, 7.2k, 6.1k, and 5.4k unitsThinkercar data.
• First-week July order changeDown 11% sequentially and 93% year over year to 5.4k unitsUsed by the report to support its view on aggressive pricing.
• Expected key datesTechnology day on July 23, 2026; deliveries beginning in August 2026; Kunlun N80 expected to launch in 4Q26Based on information from Chejipai and the report's expectations.

Impact & implications

If the SkyNomad series is delivered on schedule and enters the PHEV market at competitive prices, Xiaomi's automotive business could expand from high-performance BEVs into family and outdoor mobility scenarios, enhancing sales elasticity. However, weak recent orders also mean that new-model pricing, delivery cadence, and market acceptance will be important variables for validating the Buy rating.

Risks

• Weak recent order momentum may indicate slowing demand or rising competitive pressure.
• The SkyNomad series remains in the pre-launch and pre-delivery stage, creating uncertainty around actual delivery timing, capacity ramp-up, and user feedback.
• If aggressive pricing is excessive, it could affect the automotive business's gross margin.
• Competition in the PHEV market is intense, particularly from competitors such as BYD with established scale and supply-chain advantages.
• The report discloses that Deutsche Bank or its affiliates may make markets in or provide liquidity for financial instruments related to the company and may have received compensation for non-investment-banking services during the past year.

What to watch

• Whether the July 23, 2026 technology day confirms the SkyNomad product specifications, pricing, and delivery schedule.
• Whether deliveries of the SkyNomad series begin on schedule in August 2026.
• The official specifications, pricing, and order performance of the Kunlun N90, Kunlun N80, and Kunlun N70.
• Whether the SkyNomad entry price falls below RMB 200,000 and the impact on gross margin and the competitive landscape.
• Whether Xiaomi's weekly new orders recover from around 5.4k units.
• Progress toward achieving the full-year 2026 PHEV delivery forecast of 150,000 units.