Xiaomi is officially entering the electric car business! The announcement was made during Xiaomi’s Mega Launch.
According to the company, they would invest an estimated $10 billion for the next 10 years starting with $1.5 billion as an initial investment. The electric car subsidiary will be owned by Xiaomi and its CEO, Lei Jun, will also act as the subsidiary’s CEO.
Apparently, the next battlefield for these smartphone giants is now in electric car manufacturing. Other smartphone companies have also stated their interest or have already started making moves in securing their foothold in the EV industry. Apple is currently working on its own car and is looking for a partner to build the chassis and parts of the car. On the other hand, Apple will be developing the car’s battery, self-driving technology, and other hardware/software features.
Huawei, Xiaomi’s domestic rival, has reportedly approached the state-owned carmaker, Changan Automobile, BluePark New Energy Technology, and other potential partners for the project although this hasn’t been confirmed yet.
On the other side, Samsung SDI, which acquired infotainment maker Harman four years ago, is already creating batteries for vehicles as well as LG Energy Solutions which is making EV batteries.
We can’t wait and see Xiaomi’s future endeavors as they embark on their new business venture in the electric vehicle business.
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