Xiaomi is forming a new business unit to produce electric vehicles

Xiaomi is forming a new business unit to produce electric vehicles

When Xiaomi first declared its intention to enter the electric vehicle market in March of this year, many people were skeptical. Aside from stating that he had always wanted to explore electric vehicles, Xiaomi CEO Lei Jun has provided very little information on the project at the time of publication. After more than half a year after the announcement, the firm has finally registered the electric vehicle vertical as Xiaomi EV. We now have a great deal more information about how the company intends to continue moving forward.

Xiaomi has formed a new electric vehicle firm with a capital of about 10 billion Yuan (about Rs 11,000 crore). The business’s CEO, Lei Jun, has been certified as the legal agent of the corporation, according to a statement released by Xiaomi after the registration was completed. As of the right moment, the company employs 300 individuals and is actively recruiting for positions in the new business segment.

Xiaomi has not yet provided any information about the types of electric vehicles that it plans to manufacture under the new firm. It seems expected that the company will strive to develop affordable electric vehicles for the native country of China as well as other worldwide markets, though this is not certain. Given Xiaomi’s demonstrated expertise in market interruption, as demonstrated by its smartphone company, the speculation is plausible. The reality that China is the world’s largest producer and customer of electric vehicles (EVs) lends credence to the notion.

At the moment of its declaration, the business stated that it was prepared to invest $10 billion (approximately Rs 73,000 crores) in the electric vehicle segment over the following ten years, with the money to be spent over a ten-year period. Although there are few specifics on how this investment is going to be made at this time, Following the registration of the EV business, Xiaomi stated that it has done over 2,000 interview polls and visited more than ten industry partners since the launch in March of the business. According to the press release, the corporation even purchased Deepmotion, an autonomous driving technology startup for a total of more than $77 million in a related move (roughly Rs 562 crores). Xiaomi intends to use the funds raised from the acquisition to further its research and development initiatives.

According to a Reuters story, Xiaomi is also attempting to become a shareholder in the Evergrande Group’s automobile division. According to the publication, Xiaomi had gone into negotiations with the Evergrande Group for the acquisition in August. A Xiaomi spokesman later revealed on the firm’s social media account that the company is now in talks with many automakers but has not yet decided on the best partner to collaborate on the project.

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