Xiaomi Confirms Its Making Smart Electric Cars; Commits $10 Billion in New Venture
Mar. 30, 2021The rumors of Xiaomi planning to step into the booming electric vehicle segment had been making rounds of the Internet for a few weeks now. The Chinese giant has today confirmed that it is indeed entering the automotive industry. With the goal to develop smart electric cars, Xiaomi has set up a separate new identity for this venture.
In an official announcement, Xiaomi says that it has set up a wholly-owned subsidiary to operate the smart EV business. The company will initiallyinvest RMB 10 billion(~$1.5 billion) into this business. A total of US$10 billion has also been earmarked to be poured into the development of Xiaomi’s EV over the course of the next 10 years.
Xiaomi CEO Lei Jun will alsoserve as the CEOof the smart EV business. Not much else has been revealed by the company yet. There is no information on the technology, production, or launch plans right now. It is possible that Jun will share some details at today’s session of thecompany’s big launch event.
As per arecent Reuters report, Xiaomi will use Great Wall Motor Co Ltd’s factory to build its electric vehicles. Sources aware of the development said that the company’sEV will be aimed at the mass market, just like its existing product portfolio.
