The Chinese smartphone and electronic device maker Xiaomi wants to become one of the leaders in the so-called intelligent electric car: the connected and autonomous electric car. It is the very last Chinese company to enter this segment and it is investing in it. Total amount of investment over the next ten years: 10 billion dollars, approximately 8.5 billion euros.
In the world’s top five largest cell phone sellers, the Beijing-based group currently produces touch pads, smartwatches, headphones, scooters and scooters. Can Xiaomi Really Revolutionize China’s Electric Car Industry? New energy vehicles (hybrid, electric, fuel cell) are experiencing strong growth in the Middle Kingdom, and we must be able to meet the demand of an increasingly connected population. It is about offering ever smarter cars, knowing that the public authorities in Beijing are putting their hands in their pockets and largely financing the private sector to be the most competitive and the most productive.
Xiaomi is not the first Chinese IT group to embark on the connected automotive adventure. For the Chinese, this is a normal, natural mutation: mobility follows galloping urbanization and everything that is Chinese must be of high technological value. The other local internet giant, Baidu, announced last January that it was teaming up with its compatriot, the automotive group Geely, to produce such vehicles. Several Chinese electric car companies are experiencing renewed investor interest to the point of entering the New York Stock Exchange, discreetly, but very effectively to raise funds in the West (XPeng and Li Auto in particular).
Some, like the German Volkswagen or BMW, have already taken the lead to establish themselves locally with fully electric car models that will be produced in China. Europe must be able to compete in the face of this Chinese competition, but the manufacturers of the old continent do not have the same public support as the Asians. Renault and Stellantis (ex PSA) will still need a lot of profitability efforts to be competitive in the next decade.