Xiaomi’s journey into the era of independent research， development， and production of home appliances has officially begun， marking a significant departure from its previous reliance on contract manufacturing.
While Xiaomi’s home appliance range has expanded considerably over the years， achieving impressive market performance， discussions surrounding its manufacturing model， particularly the use of OEM/ODM (Original Equipment Manufacturer/Original Design Manufacturer)， have persisted.
Xiaomi had long anticipated the establishment of its own manufacturing facilities. The construction of its first smart home appliance factory in Wuhan commenced in November of the previous year. At the time， Wang Hua， a Xiaomi executive， indicated that self-developed and self-produced Xiaomi air conditioners would be available by 2025. This ambitious goal has now been realized.
Recent reports from the Douyin (TikTok) user “Zhecheng Xiaomi Home Zihao” suggest that Xiaomi’s smart home appliance factory has commenced operations ahead of schedule. A significant portion of the recently released air conditioners are reportedly manufactured at the Wuhan facility.
The initial phase of the Xiaomi home appliance factory project is dedicated to air conditioner production. It is planned to encompass six core sub-factories， facilitating the comprehensive assembly and production of both household and central air conditioning units. Upon the full operationalization of the factory， Xiaomi aims to achieve independent research， development， and production for a wide array of home appliances， including air conditioners， refrigerators， and washing machines. This strategic move is expected to effectively address and dispel the prevalent perception of Xiaomi home appliances being primarily manufactured through outsourced partnerships.
Industry insider “Xiaomajiabuxiao” previously reported that the Xiaomi Wuhan home appliance factory is projected to reach full production capacity and ramp-up between January and February 2026. The factory’s planned annual capacity stands at 6 million units， with an initial production target of 3 million units. This expansion signifies a substantial investment in bolstering Xiaomi’s manufacturing capabilities and market presence in the home appliance sector.
Furthermore， Xiaomi’s executive Lu Weibing has set ambitious targets for the company’s air conditioning business. Xiaomi aims to secure the third position in the open market sales volume this year and to become one of the top two air conditioner brands within the next five years. This underscores Xiaomi’s commitment to aggressively competing in a market traditionally dominated by established players.
Recent market data supports these aspirations， indicating that Xiaomi air conditioners have already climbed to third place in China’s market. Demonstrating remarkable growth trajectory， Xiaomi has achieved a year-on-year increase of 53.9%， making it the only brand among the top three to experience such rapid expansion. This impressive performance suggests that Xiaomi’s product quality and market strategies are resonating effectively with consumers.
Notably， Xiaomi’s market share in the online segment has surpassed that of Gree， securing the second position， trailing only Midea. This competitive positioning highlights Xiaomi’s growing influence and ability to challenge established leaders， particularly in the e-commerce landscape.
