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| Xiaomi plans to build electric cars |
Xiaomi plans to use Great Wall factories to manufacture electric cars.
This makes Xiaomi the latest tech company to join the Smart Travel Race.
Xiaomi, one of the world's largest smartphone manufacturers, is negotiating with China's Great Wall Factory to manufacture electric cars under its brand.
Xiaomi pushes its electric cars into the mass market, which is in line with the broad positioning of its electronic products.
The Great Wall of China has never provided manufacturing services to other companies and is providing technical advice to help accelerate project progress.
The two companies plan to announce the partnership as soon as possible next week.
This plan came to the fore when Xiaomi tried to diversify its revenue sources beyond the smartphone business. The smartphone sector accounts for most of its sales, but the profit margin is low.
Due to the scarcity of global chips, the company said its quarterly costs and sales are below market expectations.
The move is also coupled with the expertise of automakers and technology companies who are working closely together to develop smarter cars using technologies such as smart taxis and autonomous driving.
Chinese search engine supplier Baidu said in January that it plans to use Geely's auto factories to manufacture electric cars. Geely is an automobile manufacturer looking to enter into engineering and manufacturing consulting contracts.
Reuters also spoke about the aspirations of Apple and Huawei in the field of cars.
(Li Jun) Lei Jun, founder and CEO of Xiaomi, believes that the company's expertise in manufacturing devices will help accelerate the design and production of its electric cars.
Xiaomi hopes to find an automaker to provide the infrastructure for this model to take advantage of its advantages in mobile internet technology.
Xiaomi's advantages in operating systems and furniture provide great comfort for such cooperation in the future.
In addition to smartphones, Xiaomi also produces dozens of devices with internet access, including scooters, air purifiers and rice cookers.
The company plans to launch its first electric vehicle around 2023 and Xiaomi will allow its car to communicate with other devices in the ecosystem.
Great Wall of China is the largest Chinese pick-up truck manufacturer and this year it launched an independent brand of electric and smart cars.
Great Wall is also working with BMW in Germany to build an electric vehicle plant in China. Due to the growing popularity of their models, 1.11 million cars were sold last year and the first plant is being built in Thailand.