Back in March this year, Chinese tech giant Xiaomi expressed interest in producing its own EV, and now more news has surfaced regarding the Chinese firm’s new business venture. The company is now undergoing a two-phased construction of its new automotive plant along with building the division’s headquarters, sales, and research offices all within the Beijing Economic and Technological Development Zone. Once established, the factory will be able to pump out 300,000 electric vehicles every year. Mass production will begin in 2024.
Vehicles adopting electric powertrains and also greatly advancing into the connected technology sphere have led to many new players taking interest in the market. Non-automotive companies, especially tech firms, have moved quickly to seize a market share. We recently listed out seven smartphone manufacturing companies that would soon be entering the automotive industry. Xiaomi’s plan to construct this new EV production facility thus comes as a no-brainer.
The massive scale of construction for the entire venture is made possible thanks to a $10 billion USD pledge by Xiaomi back in March to create an automotive division. With thousands of stores across China, Xiaomi intends to use them as a sales portal for its upcoming EVs as well.
Xiaomi to produce 3 lakh EV units annually
Xiaomi will soon come into the EV market and is likely to utilise and develop new production technologies based on its expertise when it comes to manufacturing smartphones, TVs, and other appliances. Xiaomi’s new plant will crop up in Bejing and will have an annual production capacity of three lakh units. The new plant dedicated to the production of EVs will be executed in two phases as divulged recently by the Bejing government.
The government source also reveals that the new production plant complex will also play host to EV unit, sales, and research and development offices. The plant will be conceived in the Beijing Economic and Technological Development Zone. The production facility is expected to open up for operations by 2024. An initial investment amount of USD 10 billion will be infused within a window of 10 years and the influx of funds will be channelized to uplift and bring Xiaomi’s EV division onto the same page as global EV market requirements.
It was recently reported that Xiaomi’s electric car R&D team includes 500 members. The company is on track to launch the first Xiaomi electric vehicle in the first half of 2024. There is no word on what this EV looks like and the markets it will be available in apart from China.
Xiaomi’s success in various industries that the company is present in, especially the smartphone business, has led to the diversification into the EV market. The company intends to deploy its expertise in various departments and fields and quickly bring up a portfolio of products to cater to the EV market along with the establishment of a viable business model to support the same.
