Xiaomi has finally registered its electric vehicle company as Xiaomi EV, Inc. in China. With this, the company is officially entering the automotive industry. However, no announcement has been yet made regarding when its first electric vehicle will hit the road.
Xiaomi EV and Investments
Xiaomi has announced that its EV business is in the ‘substantial development phase’. The Chinese tech giant has incorporated the unit with a base capital of 10 Billion Yuan ($1.55 Billion). Also, the company has revealed its proposition of investing $10 billion over the period of next decade.
Xiaomi has recently acquired DeepMotion which is an autonomous driving technology startup based in Beijing. The deal was closed for an amount of $77.37 million. The acquisition is expected to help the company in its efforts to build self-driving technologies in the field of electric cars.
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Xiaomi EV & Competetion
Lei Jun, CEO of Xiaomi, is leading the electric vehicle unit. In order to make a team, the company has already expanded the headcounts to 300 and has announced to recruit new talents in the coming days.
The CEO said during the announcement of the Xiaomi EV business, “I am willing to put all my personal reputation on the line and fight for the future of our smart electric vehicle! I am determined to lead my team to fight for the success of the Xiaomi electric vehicle.”
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With its growing popularity in China, Xiaomi is entering an incredibly crowded space that’s populated by established electric car makers such as Tesla and Warren Buffett’s BYD while a few well-known startups like Xpeng and Nio. It will be interesting to know how the mobile manufacturer will cope with the competition to make its stand in the industry.