Xiaomi corporation is already the second largest smartphone manufacturing company in the world. The Asia based tech giant has been a fierce competitor in the market since it’s inception and they have no plans to stop any time soon. In fact, they announced their plans for the future earlier this year. Chairman Lei Jun revealed that they will start mass-production of the Xiaomi electric car by 2024.
Xiaomi is already involved in the production of electric bicycles and mopeds and now they are ready to take thing to the next level. To enter the electric vehicle market, the company will be setting up not one but two subsidiaries, the Xiaomi EV company and the Xiaomi Automobile Technology Co Limited.
The Xiaomi Automobile Company
Xiaomi Automobile Company registered in September in Beijing, is already in the a “substantial development phase” with an initial capital of $156 million. This amount is only one-tenth of the original capital that is $156 billion. This capital is to be spread out over the next decade.
It can not be said for sure what the aim of the automobile company will be but once operational, it will probably be working on technology development, car peripherals and accessories for energy vehicles, while the Xiaomi EV company will be responsible for the main manufacturing of the Xiaomi electric car.
Future of Xiaomi in EV industry
Xiaomi’s announcement for starting mass-production by 2024 is just the tip of the iceberg. Once production starts, they plan to launch a new car for next three years and a total sales target of 900,000 electric vehicles in those three years.
This announcement alone have skyrocketed Xiaomi stock prices. According to Reuters reports “Xiaomi shares jumped 5.4% to HK$22.50, the biggest daily percentage rise since May 12, extending gains for the third straight session”.
Xiaomi is vigorously hiring for it’s new EV subsidiary, although it is still not confirmed whether the tech giant will be producing its own electric cars or team up with an existing stakeholder in the industry.