Xiaomi to Invest $10 Billion in New Electric Vehicle Unit Over
Posted On March 30, 2021
Xiaomi has formally entered the automotive industry with a new smart electric vehicle (EV) business, the company announced on Tuesday in a filing. The firm will initially invest CNY 10 billion (roughly Rs. 11,000 crores) in the wholly-owned subsidiary, with a total investment goal of $10 billion (Rs. 73,400 crores) over the next ten years. Xiaomi CEO Lei Jun will also serve as CEO of the smart electric vehicle unit, the company added.
Xiaomi moving into the EV industry follows similar steps by other tech giants, both in China and overseas. In January, Chinese search giant Baidu Inc announced it would develop an EV unit via a partnership with domestic carmaker Geely Automobile Holdings Ltd.
In February, Reuters reported that beleaguered Chinese smartphone giant Huawei Technologies Co Ltd is currently in talks with state-owned automaker Changan Automobile and other companies to manufacture EVs.