The automobile market has been a lucrative one and is still continuing to do so. Tesla has been ruling the market for a long with its array of smart electric vehicles and recently the Chinese tech-giant Huawei had announced its development of a smart car.
Huawei partnering along with Hicar and BAIC is ready to enter the automobile market. Now the following suit, Xiaomi also hopes to do the same.
According to a local news report, multiple sources have confirmed Xiaomi’s decision to enter the automobile industry and building its own car. Xiaomi considers it as a strategic decision but is yet to make an official statement.
Back in 2013, the company CEO, Lei Jun had visited the US to meet Tesla CEO Elon Musk a couple of times. As we all know how influential Elon Musk can be, supposedly these visits aroused interest within him. Hence, without a doubt, this project seems to be headed directly by Lei Jun.
As we speak, the smartphone market seems to be facing stagnation. Tech giants like Xiaomi have diversified their reach over many daily life products and this new-born venture seems to be just at the right time.
The Indian market has lately been in demand for electric cars and companies such as Tata, Mahindra and Hyundai have been trying to meet the same. With the entry of Tesla, it seems, for now, the budget-oriented middle-class market cannot be exploited.
However, at a significantly lower cost, Xiaomi can potentially aim at grabbing the market just like it has done with its Redmi smartphones.
Since there has been no official statement, there’s no way of confirming the report and only time will tell the tale.