A well-known automotive blogger revealed on social media that Xiaomi Automobile, due to production capacity constraints, might seek Dongfeng Motor as its contract manufacturer.

The source mentioned that Dongfeng would produce this SUV, internally codenamed Kunlun, using an extended-range electric vehicle (EREV) powertrain. Positioned as a budget model, it is expected to retail for approximately 150,000 yuan and is anticipated to hit the market in 2026.

Xiaomi has not directly responded to the contract manufacturing rumors.

This has sparked heated discussions among netizens, who are curious about whether Xiaomi will change its strategy given the current production capacity constraints.

In fact, in Xiaomi's Q&A session with netizens, the company clearly stated that it would not adopt a contract manufacturing model in the future.

(Q54 from Xiaomi's Q&A with netizens)

Upon seeing this response, netizens questioned whether the blogger's revelation was merely a rumor.

However, Xiaomi's monthly vehicle deliveries have surpassed 20,000 units, and more models are expected to be launched in the future. The existing factory in Yizhuang, Beijing, can no longer meet the demand.

What should be done?

Expanding capacity by building new factories is not feasible due to time constraints.

At this point, the revelation that Wuhan Dongfeng Factory may produce Xiaomi's third SUV no longer seems far-fetched.

How credible are the rumors that Dongfeng will produce Xiaomi's vehicles?

Firstly, Xiaomi's EREV project is already well underway. Last October, Xiaomi Automobile released job postings for engineers related to EREV technology through official channels.

According to the exposed roadmap, Xiaomi Automobile intends to expand its product line, specifically mentioning the launch of an EREV SUV codenamed N3 by 2026.

Additionally, N3 will feature a rear-wheel steering system and employ Bosch's IPB 2.0 braking solution. The arrival of N3 signifies Xiaomi Automobile's official entry into the EREV market.

This coincides with the rumored Xiaomi EREV Kunlun SUV.

Secondly, besides job postings, Lei Jun, CEO of Xiaomi, has been frequently interacting with Dongfeng recently. He first congratulated Dongfeng on the rollout of its 60 millionth vehicle, then purchased a VOYAH Dreamer, and even attended the Guangzhou Auto Show to support VOYAH.

Setting aside the ambiguous relationship between Lei Jun and Dongfeng, the more critical factor is the immense production pressure faced by Xiaomi Automobile.

'Jun'er, Geely is everywhere out there~'.

This meme caused quite a stir when Xiaomi first went public. Most research institutions and users were not optimistic about Xiaomi's SU7.

However, Xiaomi SU7 successfully navigated numerous challenges and firmly established a sales volume of over 20,000 units, achieving Lei Jun's goal of delivering 100,000 vehicles in 24 years ahead of schedule.

Even more embarrassingly, from November 25 to December 1, weekly deliveries reached 6,300 units, surpassing those of Zeekr for a single model.

The reality is overwhelming for Xiaomi.

With Xiaomi's new SUV model scheduled for release early next year and the SU7 Ultra expected to hit the market in March, production pressure will further intensify. Relying solely on the second-phase factory commissioned in 2025 will obviously be insufficient to support the production demand for new models. Under such circumstances, the rumors of Dongfeng as a contract manufacturer are not unfounded.

In fact, Lei Jun has a special attachment to Wuhan, evident from the Lei Jun Class at Wuhan University and Xiaomi Group's continuous investment projects in the city.

Besides Xiaomi's Wuhan headquarters and Wuhan Science and Technology Park, Xiaomi's Wuhan Air Conditioner Factory also officially commenced operations this September.

Therefore, it is only natural for Xiaomi to invest in its new energy vehicle projects in Wuhan or collaborate with Dongfeng.

A bold guess: if the rumor of Xiaomi's new energy Kunlun SUV returning to Wuhan proves true, which Dongfeng factory will it choose?

Currently, Wuhan has two factories operated by SAIC-GM-Wuling Automobile in Jiangxia District, primarily producing Buick Verano, Buick E5, and Chevrolet Cruze. In Caidian District, Dongfeng Passenger Vehicle Plant I and II manufacture Dongfeng Aeolus brand series and Dongfeng Yipai new energy vehicles. The Economic and Technological Development Zone houses three Dongfeng Honda plants, Dongfeng Peugeot Citroen Plant III, and Dongfeng Yunfeng Plant. The VOYAH factory is located in Huangjinkou, Hanyang District.

Among these, Dongfeng Honda Plant II is relatively underutilized and was closed in October. Dongfeng Peugeot Citroen Plant III is rumored to produce new Dongfeng Nano models due to poor sales. After eliminating these options, Dongfeng Yunfeng Plant is the most likely candidate for contract manufacturing for Xiaomi. It primarily produces Nissan Ariya, a pure electric vehicle, and VOYAH vehicles, both of which are facing challenges and are essentially in a semi-shutdown state with significant excess capacity, making it well-suited to meet Xiaomi Automobile's needs.

There have also been online rumors about Dongfeng Yunfeng manufacturing Xiaomi vehicles in the past.

Why is Dongfeng Yunfeng considered a likely candidate?

This is due to its hardware capabilities. Dongfeng Yunfeng is a new-generation green and intelligent factory built by Dongfeng Motor. It features 3D digital design, an Internet of Things (IoT) collection rate exceeding 85%, and a welding automation rate exceeding 90%. It has flexible mixed production capabilities for various vehicle types, including fuel vehicles, hybrid vehicles, and pure electric vehicles. It is equipped with advanced intelligence and hardware, with an annual production capacity designed for 300,000 vehicles.

Regarding whether the collaboration between Dongfeng and Xiaomi will materialize, it is no longer crucial whether an official announcement is made or not. Perhaps, inadvertently, images of Xiaomi models will emerge from the Yunfeng factory...