Alain Lam

CFO of Xiaomi

Claims

As speaker

Mentioned in

Key positions and views

Xiaomi's entry into the EV market was a strategic imperative, executed with unprecedented speed (under 3 years from decision to launch) and heavy investment to capitalize on the market shift.

Vertical integration through building proprietary factories and localizing supply chains is critical for achieving the speed, customization, and quality control needed to compete.

AI is a fundamental enabling technology that provides a competitive advantage in both product development (e.g., material simulation) and manufacturing efficiency (e.g., automated defect detection).

Xiaomi's massive, loyal user base of over a billion connected devices is its core asset, enabling successful and rapid launches into new, high-cost product categories like automobiles.

The future of humanoid robotics will be dominated by either the US or China, and Xiaomi's current strategy is to leverage these robots for internal manufacturing efficiency rather than a consumer product.

Podcast consensus on Lam

Points of consensus

▶Alain Lam consistently emphasizes Xiaomi's rapid and large-scale entry into the electric vehicle market, highlighting the design of a car and construction of a factory in under three years.Apr 2026

▶Lam points to the massive scale of Xiaomi's ecosystem, citing over 800 million global smartphone users and over one billion connected devices as a key strategic asset.Apr 2026

▶A recurring point is the strategic importance of a localized Chinese supply chain, which Lam claims provides greater willingness to customize components compared to foreign suppliers.Apr 2026

▶Lam details the deep integration of AI across Xiaomi's operations, from simulating material formulas and automating factory quality control to developing its own large language models.Apr 2026

Points of debate

▶Lam's claim that Xiaomi invested 10 times more than its peers in developing its first car is a bold assertion that could be debated by industry analysts regarding its methodology and direct comparability.Apr 2026

▶The anecdotal claim that the CEO of Ford used a Xiaomi Su7 for six months and was highly satisfied is presented as second-hand information ('reportedly') and lacks independent verification.

▶The pricing strategy for Xiaomi's large language model—lower than Anthropic's Claude but 'significantly higher' than Chinese competitors—suggests a challenging market position that could be difficult to sustain.Apr 2026

▶Lam's assertion that Xiaomi designed a car and built a factory in less than three years, while impressive, could be scrutinized by industry experts regarding potential compromises in long-term quality, testing, and supply chain robustness.Apr 2026

Key themes

▶Aggressive EV Market Entry and Vertical IntegrationApr 2026

Lam details Xiaomi's rapid, resource-intensive push into the electric vehicle market, highlighting the company's ability to design a car and build its own factory in Beijing in under three years. This move is framed as a strategic expansion that required an investment of 3,000 people, purportedly 10 times more than peers.

This theme suggests Xiaomi is not merely testing the automotive market but is committed to becoming a major player by leveraging its capital and operational speed, posing a significant disruptive threat to established automakers.

▶Leveraging a Massive User EcosystemApr 2026

Lam frequently cites the scale of Xiaomi's user base, with over 800 million smartphone users and a billion connected devices globally, as a core asset. He points to the fact that over 20% of initial EV buyers placed orders without seeing the car as proof of the brand's strong following.

Xiaomi's strategy relies on converting its vast, loyal user base into customers for new, high-value product categories, demonstrating a powerful flywheel effect where brand loyalty in one area drives adoption in another.

▶AI as a Core CompetencyApr 2026

Lam consistently points to the application of Artificial Intelligence across Xiaomi's operations, from simulating over 100 material formulas for its EV to using AI for X-ray quality control in its factory. The company has also developed and open-sourced its own large language model, which has achieved high rankings on public leaderboards.

This indicates that Xiaomi views AI as a critical enabler for its hardware-centric business, using it to gain a competitive edge in manufacturing precision, R&D speed, and software intelligence, rather than just a consumer-facing feature.

▶Strategic Supply Chain LocalizationApr 2026

Lam emphasizes a strategic shift towards localizing the supply chain within China, noting that most smartphone components are now sourced locally. He contrasts this with foreign suppliers, stating that Chinese partners are more willing to develop customized components for Xiaomi.

This highlights a de-risking strategy away from global supply chain vulnerabilities and a move towards greater control and customization, which is crucial for rapid innovation in competitive sectors like EVs and smartphones.

Source episodes

Timeline

2011

Xiaomi launched its first smartphone, the Xiaomi One, one year after the company was founded.

Prior to 2024

Lam states that Xiaomi outsourced all of its smartphone manufacturing to partners such as Foxconn and BYD.

2021

According to Lam, Xiaomi's leadership made the official decision to enter the electric vehicle industry.

Last Year (relative to podcast)

Lam notes that Xiaomi ranked third in smartphone sales in Europe and established an electric vehicle research center in Munich, Germany.

2024

Xiaomi launched its first electric vehicle and began manufacturing it in its own newly-built Beijing factory, less than three years after deciding to enter the market.

Suggested prompts

How sustainable is Xiaomi's high-investment, rapid-development model for new ventures like electric vehicles? &nearr;What are the primary risks and opportunities associated with Xiaomi's plan to export its EVs to the European market? &nearr;How does Xiaomi's open-source strategy for its large language model align with its core hardware business? &nearr;To what extent can Xiaomi's success in converting smartphone users to EV buyers be replicated in international markets where its ecosystem is less dominant? &nearr;

Key concepts

Electric Vehicles (EVs) 10 ep Smartphone Business 7 ep Artificial Intelligence (AI) 5 ep Supply Chain & Manufacturing 5 ep Market Scale & User Base 4 ep Corporate Strategy 4 ep Global Expansion 3 ep Robotics 2 ep

Notable quotes

“We decided to get into the car industry in 2021 and then we launched our first car in 2024.”

Alain Lam · Alain Lam - CFO of Xiaomi | Podcast | In Good Company | Norges Bank Investment Management

“for us, for Xiaomi, because we have over a billion connected devices globally”

Alain Lam · Alain Lam - CFO of Xiaomi | Podcast | In Good Company | Norges Bank Investment Management

“In China, new car sales is already 50-60% new energy vehicle.”

Alain Lam · Alain Lam - CFO of Xiaomi | Podcast | In Good Company | Norges Bank Investment Management

“Next year in the second half of next year we planning to export our cars into Europe”

Alain Lam · Alain Lam - CFO of Xiaomi | Podcast | In Good Company | Norges Bank Investment Management

Report last updated: Apr 28, 2026

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