Daily Management Review

Xiaomi registers a business for development of electric cars


Xiaomi has officially registered a division that will develop electric cars. The authorized capital of the subsidiary amounted to $1.55 billion. The first Xiaomi electric car may be released as early as 2023, sources told Reuters in the spring.

Jon Russell
Jon Russell
China's Xiaomi has officially registered an electric car development business, according to its blog. The new venture is called Xiaomi EV and has a registered capital of 10 billion yuan ($1.55 billion). The unit was headed by Xiaomi founder and CEO Lei Jun.

The company said its electric vehicle development business is in a "significant development phase." The team of the new division includes about 300 employees. Xiaomi President Wang Xiang said during a second-quarter earnings call with investors that the company had received more than 20,000 resumes from potential candidates. Xiaomi added that the staff of the new unit is expanding rapidly.

Lei Jun announced the creation of an electric car development company in March 2021. At the same time, he said that Xiaomi plans to invest $10 billion in this area over 10 years. In the five months between the announcement and the company's incorporation, Xiaomi EV employees conducted audience research and studied industry chains: they conducted several thousand surveys and visited more than 10 companies of industry peers. On August 25, Xiaomi announced its $77.37 million purchase of Deepmotion Tech, a company that develops autonomous driving technology.

source: reuters.com