Xiaomi confirms that it is getting into the electric vehicle industry with a US$10 billion investment
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In 2019, Xiaomi and Bestune partnered to produce the Bestune T77, the first car that Xiaomi helped bring to market. Last week, Reuters alleged that Xiaomi would go a step further by entering the electric vehicle (EV) market, which the company has confirmed is the case. Xiaomi's preparations appear to be at an early stage though, as CEO Lei Jun spoke broadly about developing electric vehicles during today's New Product Launch II event.
According to today's announcement, the electric vehicle company will be a 'wholly-owned subsidiary' in which Xiaomi has invested CNY 10 billion (~US$1.5 billion). Total investment will supposedly reach US$10 billion within 10 years, although this is probably only an initial commitment.
It is unclear when Xiaomi will reveal any other details about its smart electric vehicle company. However, Reuters asserts that Xiaomi will contract Great Wall Motors to produce its EVs. Apparently, Xiaomi hopes to secure space at one of Great Wall's factories, with Great Wall offering engineering consultancy to accelerate Xiaomi's efforts. The name of Xiaomi's new EV company remains unknown too, but we doubt that it would go for something as obvious as 'Mi Car'.