BEIJING, Aug 21 Reuters China39;s Xiaomi Corp on Wednesday reported higherthanexpected revenue for the second quarter, revealing for the first time its auto business unit39;s contribution of 6.2 billion yuan 869.2 million.

For the three months ending in June, Xiaomi39;s revenue rose 32 to 88.9 billion yuan, beating the 85.8 billion yuan estimated by analysts, according to LSEG.

The company first announced its entry into the EV business in 2021 as a diversification from its core smartphone operations.

Xiaomi started shipping its SU7 electric vehicles in early April after announcing it would price its SU7 models competitively against Tesla39;s offerings.

It delivered 27,307 EVs in the second quarter, generating 6.2 billion yuan in revenue. This is its first financial report to include details of its auto business segment.

In a media call following the earnings report, Xiaomi39;s President Lu Weibing said he is confident the company will reach its target of delivering 120,000 electric vehicles by yearend

Since June, Xiaomi has implemented doubleshift measures to ensure monthly deliveries exceed 10,000 units.

Xiaomi39;s auto business is still operating at a loss. The unit reported an adjusted loss of 1.8 billion yuan for the quarter, with a gross profit margin of 15.4.

Lu said that as deliveries ramp up, the unit39;s profitability is expected to improve over time.

The global smartphone market has shown signs of a recovery since late last year after a prolonged period…