Xiaomi makes $10B electric vehicle move - Mobile World Live

Xiaomi makes $10B electric vehicle move

31 MAR 2021

Xiaomi detailed plans to move into the electric vehicle (EV) sector with an investment of $10 billion planned over the next decade.

In a stock market filing, the company said a wholly owned subsidiary will be established, to be headed by chairman and CEO Lei Jun, with an initial investment of CNY10 billion ($1.5 billion).

Lei argued the move into EVs is a “natural choice” for Xiaomi, citing its work to deliver “innovative technology” including AI and IoT.

He said it has sufficient cash reserves to invest “boldly without hesitation or extra concerns”.

In late February, local media reported Xiaomi was look to expand into the sector using a domestic automaker’s facilities.

The vendor has partnerships involving its voice recognition technology with Chinese car makers FAW Group and Geely, along with German-based giant Mercedes-Benz.

Xiaomi is entering an increasingly congested domestic EV market, with start-ups including NIO and BYTON competing against established automakers.

But it is not alone in looking to the sector: in January, Chinese internet giant Baidu agreed a deal to supply Geely with its intelligent driving technologies as part of an EV manufacturing venture.



Joseph Waring

Joseph Waring joins Mobile World Live as the Asia editor for its new Asia channel. Before joining the GSMA, Joseph was group editor for Telecom Asia for more than ten years. In addition to writing features, news and blogs, he...

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