After several months of waiting, Xiaomi has officially registered its brand with which it will enter the automotive industry. The division is called Xiaomi EV Company Limited and will focus on electric mobility.
According to release of the company, Lei Jun, CEO of Xiaomi will be the legal representative of the new division which began with an investment of 10 billion yuan (about 1.55 billion dollars).
Today I’m very proud to announce a milestone moment. Xiaomi’s Electric Vehicle business (Xiaomi EV Company Limited) has been officially registered, with a starting capital of RMB 10 billion and myself as the legal representative. pic.twitter.com/aySngRUlQW
— Leijun (@leijun) September 1, 2021
Likewise, the company expects to invest 10 billion dollars in the next 10 years and grow its team of researchers, since they currently have 300 specialized people to make a first prototype of the vehicle.
Similarly, Xiaomi announced the acquisition of the autonomous driving technology company Deepmotion Tech on August 25, which gives rise to the development that they will begin to carry out in the coming years.
However, according to information from the site specialized in electric transport Electreck, the company is still looking for an automotive partner to launch electric vehicle manufacturing, and although it has already been in talks with several automakers, nothing has yet been finalized. “Some of the companies include BYD, Great Wall Motor, Wuling Motors, and most recently SAIC headquarters,” added Electreck.
Xiaomi seeks to be one of the leading car brands in the world, something that they have already achieved with their cell phone brand. “” Xiaomi aims to offer high-quality smart electric vehicles to its users around the world to enjoy an omnipresent smart life, “said the CEO of the company.
Can Xiaomi conquer the automotive industry?
Xiaomi started operations in 2011 with development in cell phones and hardware; However, just three years later it became the largest smartphone maker in China and recently became the world’s largest phone maker, surpassing Samsung and Apple.
Growth has been exponential, with a cutting-edge technological offer, but at a lower price than various companies, so Xiaomi’s entry into the Chinese automotive market will mark a production, competition and technology challenge.
“It will be interesting to see how this company can compare in a competitive electric vehicle market in China. He has the funding and experience in the development of electronic products. Crucial elements to have a fair chance of reaching electric vehicle series production these days, ”said Scooter Doll, an analyst at Electreck.
In the same way, it will be necessary to see how the company confronts the problem of chips at a global level that has reduced the production of various companies in recent months, according to the car manufacturer partner that they decide and the type of specifications of electric vehicles that they announce. they will be the key points for its growth.