In the world’s top 5 largest cell phone sellers, the Beijing-based group already produces touch pads, connected watches, headphones, scooters and even scooters.
Xiaomi will now create a subsidiary dedicated to intelligent electric vehicles, with a “total amount of investment over the next ten years estimated at 10 billion dollars (8.5 billion euros) “, the company said in a statement to the Hong Kong Stock Exchange, where it is listed.
Sign of the importance given by the group to this new activity, the CEO of the group, Lei Jun, will personally manage this future subsidiary.
New energy vehicles (hybrid, electric, fuel cell) are booming in China, a leading country in this field, thanks in particular to an ultra-connected population and an incentive policy from the authorities.
National and foreign manufacturers are competing to take advantage of this outlet. And Xiaomi is by far not the first Chinese company to venture into this sector.
Chinese internet giant Baidu announced in January that it was teaming up with its compatriot, the automotive group Geely, parent company of Volvo Cars, to produce electric cars in China – the world’s largest market.
Several Chinese electric car companies are experiencing renewed investor interest, with for example the XPeng and Li Auto groups which went public last year in the United States.
Meanwhile, more established players like German groups Volkswagen or BMW have made commitments for the future, with fully electric models due to be produced in China.