Why Xiaomi Needs Apple Car Key More Than Apple Needs Xiaomi

It has been ten years of fierce competition between Apple and Xiaomi for the same phone user. But it comes as a surprise to see Apple working to enable their iPhones to unlock, start and lock the Xiaomi car. This is precisely what is happening and the actual story is not the feature itself but the reasons why Xiaomi was the one who needed such a feature.(Macrumors)

Apple Car Key Xiaomi Integration: What Was Found

Code found in Apple’s Wallet backend implies the imminent addition of Apple Car Key support to Xiaomi Auto vehicles, including SU7 sedan and YU7 SUV. This is not the first hint, the references to Xiaomi appeared way back in iOS 27 developer beta in July and the backend changes imply that Apple moved beyond early testing and is nearing final rollout of the feature.

Once enabled, Apple Car Key will enable Xiaomi owners to save the digital key to the Wallet application and use iPhone or Apple Watch NFC and UWB on compatible devices to unlock, lock and start the car, no key fob, key and no switching to other apps required.

The Angle Everyone’s Missing: Who Actually Benefits Here

Most reports frame this development as “Apple expands Car Key to another automaker”. This does not reflect the essence of the matter. Xiaomi strives to sell electric vehicles globally. In countries outside China, iPhone ownership numbers are huge especially among the premium users, the target audience of vehicles like SU7. Refusal to support the Apple ecosystem in this case will mean giving the potential buyers less pleasant ownership experience than offered by Kia or Hyundai.

This is not Apple helping out Xiaomi. This is Xiaomi recognizing that, in order to compete as a serious global automaker, it needs to integrate itself with the ecosystem that it is competing against as a smartphone producer. This is the conflict of interests that deserves some attention. Rivalry in smartphones and dependence on the same smartphone in a completely different product category.

How Apple Car Key Works on Supported Vehicles

In case somebody doesn’t know how this feature works, here is some information. Apple Car Key is not a fancy feature, it replicates and extends functions of physical key fobs:

• Lock, unlock and start the car directly from Wallet
• Express mode on many supported cars allows key access without Face ID, Touch ID or passcode, helpful when you have your hands full
• Power reserve functionality on iPhone allows for key to continue functioning after battery drain for some time
• Secure sharing of digital keys via Messages, Mail or AirDrop with options to set access limit

Functionality may vary a little bit per car manufacturer as manufacturers choose which Apple’s Car Key functionality they want to implement in their cars. Right now, it is impossible to say which features Xiaomi will offer on launch.

Xiaomi Is Not Alone Anymore

Just a few days before, similar code appeared, implying that MG (China’s SAIC Motor-owned automaker) is also preparing for implementation of Apple Car Key support. Together with the Xiaomi leak it clearly shows a trend. Apple is gradually adding its Car Key feature to Chinese made electric vehicles which is a fast growing category outside China and increasingly competes with Western and Korean automakers for the same customers.

For Apple, this is a low effort and high reach growth strategy and there is no need to invest in hardware, only software enablement that makes iPhones sticky in a brand new vehicle category. For Chinese automakers, it is now a matter of norm rather than an additional feature, as rivals like BMW, Kia, Hyundai, Rivian and Mercedes-Benz have supported this feature for many years.

Why This Matters Beyond the Headline

There is a bigger picture of how ecosystems solve rivalry. Xiaomi still fiercely competes with Apple in phones and none of the companies has any interest to change anything. All in the automotive niche, Xiaomi is a newcomer and newcomers do not dictate the terms of the ecosystem to others. Support of Apple Car Key is not a partnership of equals, it is Xiaomi recognizing that iPhone compatibility became an essential feature for any electric vehicle striving for international recognition.

Watch for Apple begins negotiating such terms with other Chinese electric vehicle producers like NIO, BYD or Zeekr. In case of smooth rollout of the SU7 and MG versions, this could become a standard part of onboarding procedure for any automaker venturing into new markets.

When Will It Actually Be Released?

There is no official announcement about the release date. Moreover, it is still unclear which Xiaomi’s markets and which trims will be able to support Apple Car Key initially. However, taking into account the pace of backend code updates, there are all signs for an announcement together with the iOS 27 release update, as the feature seems to have moved beyond early testing phase.

TheTweaks Verdict

The addition of Apple Car Key support to Xiaomi is not just another feature added to the growing list – it is a quiet recognition of the position of power in the era of electric cars meeting smartphones. Apple did not need to court Xiaomi; Xiaomi needed the ecosystem of Apple to look relevant to a global electric vehicle buyer. Such inequality is the real headline here, not the NFC unlock feature itself. Expect similar moves from other Chinese automakers in the next year not due to expansion of Apple but because rejection of Car Key support becomes competitive disadvantage that no automaker can afford.