Chinese smartphone manufacturer Xiaomi enters the electric vehicle (EV) market, which is greatly influenced by Tesla at the moment. The company entering makes the competition more exciting and is said to be significantly developing.
Xiaomi is the most recent company to have stepped into the crowded market. It is now one among many prominent carmakers like Tesla and start-ups like Xpeng, Nio, etc., competing to make a name in the EV industry.
Other automotive companies, namely Geely and Baidu, are also rumored to collaborate for building electric vehicles.
Furthermore, the EV business in China is most likely to go up over 50% in 2021. This is because the consumers are slowly embracing eco-friendly cars, and along with that, the prices are also reducing.
The leader of Internet sales, Shoppok, will tell us about the chances of Xiaomi in the electric car market.
Xiaomi Joins the EV Race
Xiaomi has set up company line-ups called the Xiaomi EV, Inc., for producing electric vehicles. The company set up registered investment capital of around $1.5 billion. Research from GizmoChina states that the company division has about 300 workers led by Lei Jun, who is the founder of Xiaomi.
Adding to that, it is said that the EV design crew of Xiaomi organized many consumer research in the past five months.
The company is also said to have partnered in the EV market with the aim of strengthening its ecological community. Certain companies include Wuling, Great Wall Motors, BYD, SAIC, etc.
After the announcement of entering the EV market, there have been reports about the company’s management visiting 85 industries. Adding to that, Xiaomi has also had thorough meetings with hundreds of automobile industry experts.
With Xiaomi having funded $1.5 billion for its EV scheme, it is said to have further plans to invest above $8.70 billion in the following years. This is to make its presence known in the EV business in China.
As announced in March by the company’s CEO, Xiaomi will be launching its electric vehicle by investing over $10 billion for the following ten years. Such an investment is sufficient enough to make a name of itself among the other prominent carmakers.
In the meantime, it made another announcement in September about its acquisition of an EV maker, namely Deep Motion, for around $77 million. Through this acquisition, Xiaomi aims to boost the technological competition in the EV industry.
The company also hopes that it can introduce autonomous features in the Xiaomi EVs soon. By stepping into the electric vehicle competition, Xiaomi has apparently made the other dominant carmakers feel threatened, including Tesla, Huawei, Nio, Baidu, and Xpeng.
Let’s not forget the big plans of the Apple company to launch the AppleCar EV in the coming years.
In early August, Reuters stated that the Chinese company met up with the prominent real-estate front-runner Evergrande. It was to buy a share in the company’s EV section.
Xiaomi acquires most of its profit through the sales of smartphones. However, the company is also earning gains by selling various other gadgets as well as online advertisements throughout multiple applications.
In this way, the internet services division of Xiaomi increased around 19% every year. The second-quarter gains of the company improved, with an increase of 64% in net profits and approximately 87% in revenues.
Xiaomi’s stake in the smartphone industry has escalated after the fallback of Huawei Technologies, one of its major competitors. Its shares alone had an increase of 1.4% in the trading in Hong Kong, besting the well-known market index, Hang Seng.
Introducing the Xiaomi Mi Car
Needless to say, Xiaomi now takes part in producing not just smartphones but also electric cars. Throughout the last few years, the company has been well recognized for its countless technological inventions. It includes smartphones, laptops, household gadgets, mobile applications, and, not forgetting, scooters as well.
Now it has reached the point where the company is soon to add an electric vehicle to its product line-up.
By now, we all know about Xiaomi’s massive investment in EV invention. And this is evident enough to confirm that the plan of inventing the vehicle is not a rumor but the truth. Before long, we will get to witness its development.
The well-known company will develop its own EV by partnering with another famous carmaker, Xpeng Motors. The new creation will be named Mi Car P7, which was set to be out in the market this year.
Evidently, the Xiaomi Mi electric car is sure to compete against Tesla. However, in regards to price, the former will be lesser in comparison to the latter. The first car from the company will most likely be an affordable EV, specially created for short travels in and around the city.
The electric car may feature a minimum of 160 kilometers per hour and a range of about 300 kilometers. Not only has the Xpeng company invested in Xiaomi EV, but it has also partnered with other companies, including Alibaba, Foxconn, etc.
What’s more, the Great Wall Motors is said to offer consultation to Xiaomi’s planning for advancing the plan. Apart from that, the company will provide production assistance as well.
Aside from the Chinese market, such vehicles are sure to gain popularity in other places as well. Most of all, they will undoubtedly be cheaper than the Tesla automobiles.
It is still unsure how the investments will go on about. Nevertheless, it is easy to say that such inventions look rather hopeful, no matter the competition.
Taking shares in the EV industry is a common occurrence for these manufacturers. The rumors about Apple inventing the Apple Car spread online this way.
Now when it comes to Xiaomi EV rumors, it started to arise some weeks earlier, exciting the people supporting the company. Such a plan involves high risk since Xiaomi is sure to run into many competitions when developing an EV.
So, it is still unsure if this creation will be in demand. Nevertheless, it is safe to say that the Xiaomi EV will surely be cheaper than Tesla.
All in all, it will be worth the wait to see how Xiaomi pushes ahead in the fierce EV industry in China.