Xiaomi to Invest $10 Billion in New Electric Vehicle Unit Over 10 Years

Xiaomi CEO Lei Jun will also serve as CEO of the smart electric vehicle unit.

By Reuters | Updated: 30 March 2021 17:35 IST

Xiaomi to Invest $10 Billion in New Electric Vehicle Unit Over 10 Years

Xiaomi moving into the EV industry follows similar steps by other tech giants, both in China and overseas

Highlights

Xiaomi will initially invest roughly Rs. 11,000 crores in its EV unit
It has planned a total investment of around Rs. 73,400 crores
Other tech giants including Apple are also rumoured to invest in EVs

Xiaomi has formally entered the automotive industry with a new smart electric vehicle (EV) business, the company announced on Tuesday in a filing. The firm will initially invest CNY 10 billion (roughly Rs. 11,000 crores) in the wholly-owned subsidiary, with a total investment goal of $10 billion (Rs. 73,400 crores) over the next ten years. Xiaomi CEO Lei Jun will also serve as CEO of the smart electric vehicle unit, the company added.

Xiaomi moving into the EV industry follows similar steps by other tech giants, both in China and overseas. In January, Chinese search giant Baidu Inc announced it would develop an EV unit via a partnership with domestic carmaker Geely Automobile Holdings Ltd.

In February, Reuters reported that beleaguered Chinese smartphone giant Huawei Technologies Co Ltd is currently in talks with state-owned automaker Changan Automobile and other companies to manufacture EVs.

Apple Inc has also long been planning an entry into the EV market, according to reports.

Last week Reuters reported exclusively that Xiaomi was in talks to partner with Chinese automaker Great Wall Motor Co for help in manufacturing EVs.

Xiaomi declined to comment on the report, while Great Wall said in an exchange filing that it had not discussed such a partnership with Xiaomi.

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