Chinese smartphone manufacturer Xiaomi has officially confirmed that it is making a foray into the electric vehicle space. Xiaomi has even created a subsidiary company led by Xiaomi CEO Lei Jun with an aim to speed up the project. The company will invest about $1.5 billion in the project and an additional $10 billion over the next 10 years. Representatives of the company emphasize that Xiaomi’s goal is to commence the production of high-quality electric cars that will enable drivers and passengers to enjoy the smooth driving and perks of modern technology everywhere in the world.
Earlier, the media reported that Xiaomi was considering the production of electric vehicles at the facilities of one of the Great Wall factories in China. If an agreement is reached, the well-known carmaker will provide engineering solutions on how to accelerate the production. The first model of a joint electric car is planned to be made by 2023. The smart machine will be designed for the mass market, but it will be compatible with all Xiaomi products.
Shares on rise
The news about the possible cooperation of Xiaomi with Great Wall boosted the value of the shares of both companies. So, Xiaomi stocks added more than 6% on the Hong Kong Stock Exchange, while Great Wall shares soared by 10%. Analysts are confident that the shares of both firms have great potential for further growth in anticipation of official confirmation of information about the joint production of electric vehicles.
Another ambitious project of Xiaomi, less known to investors, is connected with the creation of motor homes. The comfortable electric motor home, which is equipped with all the smart technology functionality made by the company, was unveiled at the recent presentation of Xiaomi's new products. Yet, investors do not know much about this project. What is known is that it took only 3 months to create a motor home and it was released as part of the New Year's wishes program for Xiaomi customers. One of them asked to make an electric car for traveling. Now it remains to puzzle over whether the motor home will be mass-produced or whether it was released in a single copy.
Xiaomi, which was founded more than 10 years ago, has gained popularity not only as a smartphone maker. The company's product list includes about 2 dozen items of equipment. The most popular products are smartwatches and fitness bracelets, wireless headphones and routers, as well as gadgets for the smart home. In addition, Xiaomi produces electric bicycles, segways, and electric scooters. During the last 2 years, the company had serious problems. A bug was discovered in the program code of one of the models, which allowed hackers to gain full remote control over the vehicle.
China craving to take lead
Xiaomi is not the first Chinese company from the IT sector that wants to join the race for leadership in the automotive industry. Early this year, Alibaba presented its debut electric car. Jack Ma's company worked on its creation together with SAIC Motor specialists. Baidu has also repeatedly stated its intention to build electric cars. The developer of the most popular Chinese search engine plans to cooperate with Geely, one of the largest auto companies in China.