Xiaomi points to electric cars: investments of 10 billion dollars

Xiaomi points to electric cars: investments of 10 billion dollars

Xiaomi points to electric cars

Xiaomi has defined its new plan dedicated to the construction of an electric car. Following the different indiscretions of recent days relating to the will of the Chinese giant to also undertake the path of electric and sustainable mobility, it is the same Xiaomi that through Twitter has published the document that also shows some details of the project.

The Chinese company will therefore start with an initial investment of $ 1.5 billion, with the intention of dedicating approximately $ 10 billion over the next 10 years. It is no coincidence, in fact, during the keynote in which new technological products were unveiled, the CEO Lei Jun took the opportunity to announce the creation of an internal division dedicated to battery cars thanks to the investments planned for the next years.

Photo credit - depositphotos .com The topic of electric car production is very popular and we have previously had several discussions with the other managers of the company about the possibility of Xiaomi entering this sector. In the end, we preferred to close the gap with the other smartphone-producing brands and lay solid foundations for what would become our core business. On January 15 of this year, however, the board asked us to explore the field of electric cars. At first I wanted to say no, because we invested five years in building our smartphone business and developing an electric car would have been just a distraction, but in the end I approved of this choice.

The huge sum will inevitably be used both for the development of the powertrain and for the car management software. The new division called Xiaomi Smart Electric Vehicles will be dedicated to the development of the new electric vehicle, which will have Lei Jun himself as CEO.

I am fully aware of the risks and I also know that we will not see the results of these investments for some years but we can afford to make mistakes and lose money. I know that Xiaomi can do it, because over the years we have accumulated funds and experience. We can also count on a research and development team of 10,000 people, soon to be joined by another 500. We want our cars to meet customer expectations: I will take on the role of CEO of this new division and I I will ensure that the new products are perfectly integrated into our ecosystem, which will range from smartphones, to home automation to sustainable mobility.

The “Xiaomi Mi 1S” electric scooter is available on Amazon.

Xiaomi To Manufacture Electric Vehicles As Well

Xiaomi's co-founder and chief executive officer (CEO) Lei Jun will concurrently serve as the CEO of the smart electric vehicle business

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March 31, 2021 2 min read

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Chinese smartphone manufacturer Xiaomi has officially made its mark in the automotive industry after announcing its electric vehicle (EV) unit. According to a statement by the company for its shareholders and potential investors, Xiaomi will set up a wholly-owned subsidiary to operate  the smart electric vehicle business. 

The company will initially invest RMB10 billion, with the total investment amount over the course of the next 10 years is estimated to be $10 billion. 

Xiaomi’s co-founder and chief executive officer (CEO) Lei Jun will concurrently serve as the CEO of the smart smart electric vehicle business. 

“Xiaomi hopes to offer quality smart electric vehicles to let everyone in the world enjoy smart living anytime, anywhere,” the statement read. 

Xiaomi—which is popular for manufacturing budget smartphones along with other electronic accessories such as smart televisions, toothbrushes, power banks and laptops, among others—has become a household brand in India. The brand, which competes against the likes of Samsung in consumer electronics, is likely to launch its electric vehicles in India, the company’s biggest market. 

Lately, India has been witnessing a series of significant developments in terms of electric vehicles. Popular electric vehicle manufacturer Tesla has announced its arrival in the country, turning heads of major investors in the space. 

Tesla dominates the segment with 18 per cent of the global EV sales. Its closest competitor Volkswagen, holds a mere 6 per cent market share. 

Bengaluru-based ride hailing aggregator OLA has also been working extensively in the EV space. Post the lockdown, Bhavish Aggarwal led OLA has recently announced the setting up a 500 acre manufacturing plant for its electric two wheelers. The company aims to produce sound 10 million electric two wheelers, almost 15 per cent of e-scooters of the world. Other companies such as Ather, Mahindra, Euler, Gayam Motor Works, among others, working in this space. 

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