- Xiaomi plans to enter the electric car scene with a planned investment of 10 billion US dollars.
- CEO Lei Jun will lead the company’s EV business.
Xiaomi is far more than just a smartphone manufacturer, but you probably already knew that. The company has now diversified its interests into a brand new category – electric cars – and plans to invest $ 10 billion in electric vehicle manufacturing over the next decade.
The company announced its plans today in an exchange registration. With an initial investment of 10 billion yuan (~ US $ 1.5 billion), a wholly-owned subsidiary is established in the smart electric vehicle business. CEO Lei Jun will lead the newest company.
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“Xiaomi hopes to offer high quality smart electric vehicles so anyone in the world can enjoy a smart life anytime, anywhere,” the company wrote on its file, suggesting that its electric vehicles are not limited to just China.
There’s no official word on when exactly we can expect a Xiaomi-branded electric car to hit the streets, but the Chinese company has promised to release more information later in the second part of its mega-launch event. However, it is too early to predict anything.
With this new business sector, Xiaomi will compete against other smartphone giants who want to get into the electric car scene. Huawei is also reportedly in talks with vehicle manufacturers to bring electric vehicles to market under its own brand. Apple should also jump on the bandwagon.
Even so, it will be interesting to see how Xiaomi aims to achieve success in the automotive space. We’ll update this article as we know more about the company’s ambitions.