Ending speculation, Xiaomi confirms expansion in the electric vehicle segment. The company will set up a new Xiaomi EV subsidiary, covering both technical and software technologies associated with autonomous driving systems.
The initial investment is 10 billion yuan ($ 1.52 billion), with the project projecting a total investment of $ 10 billion over the next ten years. Xiaomi founder and CEO Lei Jun will be the CEO of the new EV project.
It is unclear at this time whether Xiaomi will sell cars under its own brand image, work in partnership with car manufacturers already established for the actual manufacture of cars, or simply deliver the technologies developed to industry players who want to use them under license. as it did for most of its hardware devices. What is certain is that Xiaomi has so far presented itself more as an internet giant, provider of affordable services and hardware devices, centered around the ecosystem created online.
Xiaomi already has several models of electric scooters and bicycles in its portfolio, but the switch to electric cars will be an important leap for the Chinese giant.
According to speculation, the company could want more of the “assets” provided by the Chinese Government. For example, the Great Wall Motor (GWM Group) factories, a state-owned company established in 1984, based in Hebei Province, could be included in the partnership.
Adding first its own experience and brand image, Xiaomi plans to finally deliver new competitive EV models, possibly available for purchase and through the international distribution channels already developed by the company.