Xiaomi has began its European rollout by appointing eight established German dealer groups to form its first franchised sales network.
The Chinese technology company has signed memoranda of understanding with the companies ahead of its planned European electric vehicle launch next 12 months.
The move confirms Xiaomi will use established franchised dealers to support vehicle sales and aftersales because it expands beyond China.
Its initial partners are Autohaus Dinnebier, Autohaus Gotthard König, AVAG Holding, Dello-Dürkopp-Hansa, Emil Frey Germany, Jacob Söns, Lueg and Wellergruppe.
Together, the companies operate large group networks across Germany and represent a spread of established automotive manufacturers.
Germany shall be one in every of Xiaomi’s first European markets, with the dealer partnerships intended to supply nationwide sales and repair coverage.
Xiaomi has not yet confirmed what number of dealerships will represent the brand or which electric vehicles will initially be offered.
Local pricing and European vehicle specifications also remain undisclosed.
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Franchised model sets template for European expansion
The choice to work with large dealer groups indicates Xiaomi intends to mix its technology and digital sales experience with conventional automotive infrastructure.
The partnerships will give the brand access to established showrooms, trained sales teams, service facilities and existing customer bases.
They may also provide a template for Xiaomi’s entry into other European markets, where sales and aftersales coverage shall be central to constructing customer confidence in the brand new brand.
The agreements follow Xiaomi’s work to ascertain a European automotive research and development operation.
As Automotive Management reported in May, the corporate has been recruiting senior European automotive executives to assist adapt its vehicles for purchasers and regulations outside China.
Its European development operation is led by former BMW executive Rudolf Dittrich, who spent 15 years with the German manufacturer.
Other recruits have included former BMW employees with experience in vehicle dynamics, performance development, engineering and design. Xiaomi has also advertised automotive positions based in Munich.
UK dealer plans TBC
Xiaomi previously confirmed that it could begin selling vehicles outside China in 2027, but had not detailed its European distribution strategy.
The German agreements now provide the clearest indication of how the manufacturer intends to ascertain its sales and aftersales operations.
Xiaomi has not confirmed whether the UK shall be included in the primary phase of its European rollout or whether discussions with British dealer groups have began.
A UK launch would introduce one other Chinese EV manufacturer right into a market already experiencing rapid expansion by brands including BYD, Omoda, Jaecoo, Xpeng and Leapmotor.
Xiaomi entered vehicle manufacturing with the SU7 electric saloon before expanding its Chinese range with the YU7 SUV.
It has positioned its cars inside a connected technology ecosystem spanning smartphones, household appliances and other consumer products.
This Article First Appeared At www.am-online.com
