Xiaomi To Manufacture Electric Vehicles As Well Xiaomi's co-founder and chief executive officer (CEO) Lei Jun will concurrently serve as the CEO of the smart electric vehicle business
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Chinese smartphone manufacturer Xiaomi has officially made its mark in the automotive industry after announcing its electric vehicle (EV) unit. According to a statement by the company for its shareholders and potential investors, Xiaomi will set up a wholly-owned subsidiary to operate the smart electric vehicle business.
The company will initially invest RMB10 billion, with the total investment amount over the course of the next 10 years is estimated to be $10 billion.
Xiaomi's co-founder and chief executive officer (CEO) Lei Jun will concurrently serve as the CEO of the smart smart electric vehicle business.
"Xiaomi hopes to offer quality smart electric vehicles to let everyone in the world enjoy smart living anytime, anywhere," the statement read.
Xiaomi—which is popular for manufacturing budget smartphones along with other electronic accessories such as smart televisions, toothbrushes, power banks and laptops, among others—has become a household brand in India. The brand, which competes against the likes of Samsung in consumer electronics, is likely to launch its electric vehicles in India, the company's biggest market.
Lately, India has been witnessing a series of significant developments in terms of electric vehicles. Popular electric vehicle manufacturer Tesla has announced its arrival in the country, turning heads of major investors in the space.
Tesla dominates the segment with 18 per cent of the global EV sales. Its closest competitor Volkswagen, holds a mere 6 per cent market share.
Bengaluru-based ride hailing aggregator OLA has also been working extensively in the EV space. Post the lockdown, Bhavish Aggarwal led OLA has recently announced the setting up a 500 acre manufacturing plant for its electric two wheelers. The company aims to produce sound 10 million electric two wheelers, almost 15 per cent of e-scooters of the world. Other companies such as Ather, Mahindra, Euler, Gayam Motor Works, among others, working in this space.