Why Xiaomi enters the race of electric cars
Xiaomi has announced the creation of a supply chain dedicated to the electric car. All the details
Xiaomi enters the race of electric cars.
The Chinese giant, the world's second-largest smartphone maker behind Samsung, has officially registered its electric vehicle business and said the division has entered a "substantial development phase."
The company will design electric vehicles through Xiaomi Auto. This is an operation on which the group focuses a lot, in July Xiaomi hired 500 engineers in China.
In March, the Beijing-based company had already announced plans to launch an electric car business and invest $ 10 billion over the next decade.
However, no marketing data was provided with the formalization of the electricity division. The company has yet to unveil a car.
Xiaomi, known for its smartphones and other internet-connected hardware, is jumping into an incredibly crowded space in China between start-ups like Nio and Xpeng and established players including Tesla and BYD, a Chinese automaker backed by Warren Buffett, points out. Cnbc .
Not only that, in the electric car market, the Chinese company will also compete with direct rivals Apple and Huawei .
Shares of Xiaomi were up around 1.4% in afternoon trading in Hong Kong, outperforming the broader Hang Seng index.
All the details.
WHAT XIAOMI EV WILL DO
Chinese smartphone giant Xiaomi has officially registered its electric vehicle business. The name of the division dedicated to electric vehicles is Xiaomi EV, established with a registered capital of 10 billion yuan (1.55 billion dollars).
Xiaomi EV now has 300 employees and the company is led by the founder and CEO of the Lei Jun group.
WHAT POINT IS IN THE DEVELOPMENT OF ELECTRIC VEHICLES
Xiaomi said its electric vehicle team has "conducted an enormous amount of user research" over the past five months.
But the Chinese giant has not yet unveiled a product.
THE ACQUISITION OF THE STARTUP DEEPMOTION
Last week, the company said it bought self-driving technology startup Deepmotion for more than $ 77 million to "improve the technology competitiveness" of its electric vehicle business.
AS THE CHINESE TECH COLOSSUS IS
Xiaomi's second-quarter earnings last week beat analysts' estimates, with revenues and net profits up 64% and 87.4% respectively. The company's share in the global smartphone market has increased following the retreat of its main rival, Huawei, under pressure from the US government.
COMPETITION IN THE CHINESE ELECTRICITY MARKET
But the electric car race is an extremely crowded race in China. There are already hundreds of Chinese companies vying for a share of the world's leading electric car market.
China's largest automaker Geely is launching a premium electric car brand that it hopes will override Tesla. The company that owns Volvo and Lotus announced its Zeekr brand in March to meet Chinese demand for electric vehicles (EVs).
And the competition doesn't end with the car manufacturers.
Other Chinese tech companies have also signaled their intentions to produce cars or to partner with existing car manufacturers to produce new driving technologies. Search engine giant Baidu announced in January that it will also launch an electric car business.
Chinese e-commerce giant Alibaba has formed an electric vehicle joint venture with SAIC, while ride-hailing app Didi Chuxing has partnered with automaker BYD to make electric vehicles specifically designed for its services.
Finally, as the BBC points out , “foreign manufacturers are also trying to build electric vehicles for Chinese consumers”. Tesla is already delivering its Model Y to China from its Shanghai factory, while Ford plans to produce the electric version of its Mustang there.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/smartcity/perche-xiaomi-entra-nella-corsa-delle-auto-elettriche/ on Wed, 01 Sep 2021 09:34:49 +0000.