Xiaomi to soon enter Electric Vehicle Market with $10b Investment

The Chinese Smartphone company Xiaomi is reportedly planning to enter into the Electric Vehicle platform. The company which is involved in manufacturing consumer electronics is planning to invest into the Electric Vehicle Industry. Let’s look at this article to understand the plans of Xiaomi about its EV industry.

Xiaomi
Xiaomi planning to enter Electric Vehicle market
Xiaomi’s EV Investments
China’s Electric Vehicle market
Other Players in Electric vehicle market
FAQ

Xiaomi

Xiaomi is a Chinese Multinational company which is headquartered in Beijing. The company was founded in the year 2010. Xiaomi makes and invests in smartphones, laptops, mobile apps, home appliances, bags, shoes, consumer electronics, accessories, and IoT devices.

Xiaomi is the fourth company to develop a mobile system on chip (SoC) capabilities after Apple, Samsung, and Huawei. Xiaomi is the fourth largest mobile manufacturing company in the world. The company has a leading position in the largest market which is China and the second largest market which is India.

Xiaomi planning to enter Electric Vehicle market

Xiaomi has plans to be part of the Electric Vehicle market. Xiaomi has confirmed its intention to invest $10 billion in its own subsidiary firm which is completely owned by Xiaomi. They had confirmed their intentions at the Mi MIX Fold Global Launch Event.

The initial investments according to the confirmation stand at CNY 10 billion. The founder and CEO Lei Jun is expected to lead the Electric Car project of the company for the time being. Xiaomi has not revealed any information about the products they plan to introduce or work on in the Electric Vehicle segment of the company.

There are no announcements regarding their projects and no information about the company’s launch plans. Xiaomi has said that they want to work on providing quality electric vehicles which would let everyone in the world to enjoy smart living anytime and anywhere.

Xiaomi’s EV Investments

According to the report by Chinese media LatePost Xiaomi’s entry into the EV market to manufacture Electric cars was taken after considering it for years. They have also said that the company’s plans are just in the early stages and it might change in the future as well.

The report has also said that in the year 2018 Xiaomi had launched an early project in the electric vehicle segment called Mi car to explore the electric car making industry. It is said that the CEO of Xiaomi Lei Jun had visited Elon Musk who is the CEO of Tesla in 2013 twice.

Xiaomi has also made a mark in the Chinese Electric Vehicle segment by investing in Xpeng motors which delivered around 27,041 vehicles in the year 2020. They have also invested in NIO which is also a Chinese homegrown Electric Vehicle maker.

China’s Electric Vehicle market

China’s Electric Vehicle market has seen a significant growth in the recent years. It has attracted a lot of high-profile companies ranging from traditional automobile companies to internet companies.

According to a research by the China Association of Automobile Manufacturers, In the year 2020, the country saw an increase in the sales of EV which accounted for 1.37 million. There is an increase in the sales of up to 11% year-on-year.

China based automaker Greely auto has said that it is planning to focus more on to the Electric Vehicle segment. The founder and Chairman of the company Li Shufu have announced that the company has plans to shift 90 percent of its production to hybrid Electric vehicles and is also planning to set up a new factory for New Energy Vehicles.

The growth of the Chinese Electric Vehicle market has come after the multiple policy campaigns which are to promote carbon reduction which includes the plans to reach carbon neutrality by 2060.

Other Players in Electric vehicle market

Earlier, Huawei had announced its plans to enter into the manufacturing of Electric Vehicles. There were several speculations through various news reports which had suggested that the company had approached China’s Changan Automobile, BluePark New Energy Technology, and other players in the industry. Huawei has plans to concentrate on developing smart bits and to let the car manufacturers provide car parts.

From the western world, there has been a lot of rumors of Apple entering into the Electric Vehicle segment. It is said that the iPhone manufacturer is working on an electric vehicle of its own. The company is focusing on building the autonomous tech, battery, and the technical parts of the car and would require another partner from the automobile sector to work on the rest of the parts of the car.

FAQ

Which is the cheapest electric car?

Smart EQ Fortwo EV is one the cheapest electric car.

What are the 3 types of electric cars?

Battery Electric Vehicles (BEVs), Plug-in Hybrid Electric Vehicles (PHEVs), and Hybrid Electric Vehicles (HEVs) are the 3 types of electric cars.

Who is the CEO of Xiaomi?

Lei Jun is the current CEO of Xiaomi.

Conclusion

Compared to Apple and Huawei, Mi has still not announced any of its plans for its products or the launch. We will have to wait for any more news regarding the Chinese smartphone manufacturer's entry into the Electric Vehicle Segment.