Emir BardakçıXiaomi Auto has officially announced a large-scale dealer subsidy program in an effort to promote the development of their offline dealer channels across the whole country. According to Jiemian News, the firm has already issued more than 100 million yuan (approximately $14 million) of subsidies to car dealers, especially focused on car-integrated retail stores.
Dealer Subsidy Policy Details
According to the established subsidy policy for Xiaomi Auto, there is a clear unconditional benefit for the dealers. Stores erected in 2024 will be eligible for a subsidy of 100,000 yuan (about $14,000). Simultaneously, stores completed before December 15, 2025, will be eligible for a far more substantial subsidy amount of 500,000 yuan (about $70,000).
These payments are independent of any new sales volume or operational commitments. The new pattern of payment aims to ease the entry process for partners as well as promote a quicker expansion of physical presence for Xiaomi Auto in the major regions of China. This strategy implies that Xiaomi aims to emphasize stability and confidence building with its partners at a critical phase of expansion.
Fast Growth of Xiaomi Auto’s Sales and Stores
According to publicly available data quoted by IT Home, Xiaomi Auto sold 46,249 new energy passenger vehicles in November 2025. Of these, 33,729 units of YU7 models were sold in the wholesale market, reflecting its widespread adoption.
As far as new store openings are concerned, Xiaomi Auto opened 17 new stores in November, and the cumulative number of new stores reached 441 in 131 cities in China. The goal is to establish 36 new stores in December and cover seven new cities, including Hengyang and Mianyang, in addition to those already being served. As of November 30, Xiaomi Auto had opened 249 service outlets in 144 cities.
“Red Envelope” Incentives and Forthcoming Changes in Policies
According to sources with knowledge of the issue, some distributors have received more than 4 million yuan (approximately 560,000 USD) of subsidies handed out with so-called “red packets.” Such subsidies were perceived more as appreciation presents than the kind of compensation related to channel performance.
Going forward, Xiaomi is said to be making preparations for another round of policy adjustment. This will cover more flexible guidelines for the management of store performance and the incentive scheme. This will help create a less strenuous operating environment for dealers, given the expansion of Xiaomi Auto.
