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| Xiaomi enters the field of smart electric cars |
Chinese smartphone maker Xiaomi announced that it made a deposit today and has officially announced that it is officially entering the automotive industry with a new smart electric car company.
The company initially invested 10 billion yuan ($ 1.52 billion) in its wholly owned subsidiary with a total investment target of $ 10 billion over the next decade.
The company launched the largest overhaul in history to enter the booming Chinese electric vehicle market, and the company said: Xiaomi CEO Lei Jun is also the CEO of the smart electric vehicle division.
The Chinese smartphone maker is working with tech giants from Apple to Huawei to reach the auto industry and betting that future cars will become more autonomous and connected.
Bloomberg stated that Xiaomi could invest 100 billion yuan in the project over the next three years, including external financing. The company will invest about 60% and plans to collect the rest.
Xiaomi is the latest company to hit the crowded arena, as automakers from Tesla to domestic startups such as Nio and Xpeng compete for the world's largest electric vehicle market.
Research firm Canalys estimates that electric vehicle sales in China could grow by more than 50% this year alone as consumers prefer cleaner cars and lower costs.
Since Xiaomi relies on Taiwanese manufacturers like Foxconn to manufacture its mobile devices, the Beijing-based company assembles cars, which are its smartphone models.
The company does not intend to select mature auto makers as manufacturing partners, however, John made an assessment of the electric car industry's potential a few months ago, and in the past few weeks, he made the final decision to enter the field.
John founded the company more than ten years ago and became the fastest-growing Chinese smartphone maker in the fourth quarter of last year after Huawei struggled to secure key chips due to US sanctions.
In addition to phones, the company is also known for operating internet services and making inexpensive household appliances, from rice cookers to robotic vacuum cleaners.