Xiaomi EV, Inc. is the name of the subsidiary, which was established with a previously disclosed registered capital of 10 billion Yuan ($1.55 billion).
Xiaomi Corp, the Chinese smartphone maker, announced on Wednesday that its electric car subsidiary has received its official business registration, marking the latest step in the company’s push into the automotive industry
Xiaomi Auto is said to have chosen Beijing as the location for its headquarters and first automotive production. Xiaomi EV Inc was established with a registered capital of 10 billion Yuan ($1.55 billion) and Xiaomi CEO Lei Jun serving as its legal representative.
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Aside from the host city, the subject of how the world’s largest electronics company plans to make automobiles has gotten a lot of attention. Xiaomi announced on Wednesday that it has performed over 2,000 interview surveys and visited more than ten industry peers and partners since then. However, it has provided little details about its automotive strategy or the car types it plans to deploy.
The business said last week that it had purchased Deepmotion, an autonomous driving technology startup, for over $77 million to improve research and development.
Since April, Lei Jun, Xiaomi’s founder and CEO, has visited several automobile manufacturers, including Changan Automobile, GAC Motor, SAIC-GM-Wuling, and Great Wall Motor, and has released a considerable amount of recruitment information. So far, 300 people have been hired to work for the EV unit, and it is still looking for more.
In addition to manufacturing services, speculations surfaced that Great Wall Motors will provide advice for Xiaomi’s engineering process to speed up the project
Xiaomi is now a legally registered electric vehicle company, albeit it is still looking for an experienced EV manufacturing partner in China.
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It will be interesting to observe how this company performs in China’s crowded EV industry. It has the funds and the experience in electronics development. To have a good chance of reaching series manufacturing of electric vehicles today, there are two key elements.
Still, the road to mass-market passenger electric vehicles will be long and winding, so Xiaomi will need a partner in the car industry more than ever.
Xiaomi’s mobile phone sales exceeded Apple’s in the second quarter of 2021, making it the world’s second-largest smartphone manufacturer for the first time, according to IDC, an international research firm
However, despite this stellar financial performance, Xiaomi’s stock price has remained stagnant. Xiaomi’s share price began 2.54 percent higher on March 31, driven by reports of the company’s perspective car-building operation, and surged over 6% in intraday trade before falling substantially.
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