Beijing-headquartered Xiaomi Corporation (Xiaomi) has announced that it will commence its smart electric vehicle business with an initial investment of RMB 10 billion.
In an official notice to Hong Kong Stock Exchange (HKEX), the company stated Xiaomi will set up a wholly-owned subsidiary to operate the smart electric vehicle business.
“The initial phase of investment will be RMB 10 billion, with the total investment amount over the course of next 10 years estimated to be USD 10 billion,” the company said in an official notice.
Lei Jun, the Founder, Chairman & CEO of Xiaomi will serve as the CEO of the smart electric vehicle business.
“Smart electric vehicles represent one of the largest business opportunities in the next decade and represent an indispensable component of smart living,” Lei Jun said in a company blog.
“Entering this business is a natural choice for us as we expand our smart AIoT ecosystem and fulfill our mission of letting everyone in the world enjoy a better life through innovative technology.”
In an internal letter to employees, Lei Jun stated that Xiaomi has distinct and unique advantages in manufacturing cars:
- Smart electric vehicles have fundamentally transformed the business model of the traditional automotive industry, and Xiaomi has the deepest understanding of the hardware-based internet service business model;
- Xiaomi has the most extensive experience in software and hardware integration and the most profound manufacturing know-how within the internet industry;
- Xiaomi has a smart ecosystem that is the largest in terms of scale, the most diversified in terms of product category, and the most active in terms of user connections;
- Xiaomi has numerous core technologies that can be applied to the smart electric vehicle business;
- Xiaomi has a powerful brand and strong user base, with trust and support from Mi Fans across the globe; and
- Xiaomi has abundant cash resources that allow Xiaomi to invest with confidence.
- By Shraddha Kakade,
Asst. Editor, Emerging Technology News.