Xiaomi invests 10 billion US dollars in the e-car sector

Xiaomi is entering the "Smart Electric Vehicle Business," the technology company announced via Twitter at the end of March. No details were given yet, only the scope of the investment sum is clear: Ten billion US dollars, primarily financed from equity, will initially flow into the development.

No Surprise

As early as February of this year, rumors circulated about a possible vehicle project, referencing the 2018-started "Mi Car" project, which was to examine the production of electric cars. Now, founder and CEO Lei Jun confirmed during a comprehensive product presentation of smartphones, vacuum robots, and air conditioners that they also plan to enter the e-mobility sector in the future, after he had "struggled with the decision for a long time":

“In the e-car market, we are a latecomer with little experience. But we learn quickly and have excellent professionals,” Lei Jun admits.

The CEO will also take over the leadership of the automotive subsidiary. He further explained that the decision was a collective one, together with the board. Previously, an expert panel of 200 people had been consulted.

Cooperation with GW?

With the new electric subsidiary, China's third-largest smartphone manufacturer is diversifying further and might possibly cooperate with Great Wall Motor as a contract manufacturer, according to a Reuters report. Nothing official has been announced here either. Xiaomi works closely with iPhone producer Foxconn in the production of its smartphones; Foxconn themselves produce their own electric car platform, called MIH, and together with Geely have founded an e-mobility contract manufacturer.