Xiaomi to invest $10 billion in making smart electric vehicles

Mar 20,2024
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There have been several rumors about Xiaomi’s decision to enter the automobile industry and building its own car. The Chinese giant confirmed its decision of entering the automotive industry yesterday in an official announcement.

According to a recent Reuters report, Xiaomi will use Great Wall Motor Co Ltd’s factory to build its electric vehicles. Xiaomi says that it has set up a wholly-owned subsidiary to operate the smart EV business. The company will invest a total of US$10 billion over the course of the next 10 years into the development of Xiaomi’s EV.

Xiaomi's CEO Lei Jun will also serve as the CEO of the smart EV subsidiary. Sources claim the EV will be aimed at the mass market just like the company's other products. Xiaomi is expected to launch its first electric car sometime in 2023. The company will face competition from the likes of BYD, Xpeng, and NIO in the electric vehicle space in the China market.

There is no further information on the technology, production, or launch plans as of now. The two companies could make their partnership official over the coming weeks. Till then, we can wait for more details.