Xiaomi CEO and Founder Lei Jun speaks at the company’s product launch event on Tuesday, March 30, in Beijing.
Chinese tech giant Xiaomi announced on Tuesday, March 30, the creation of a wholly-owned subsidiary to operate its intelligent electric vehicle business, with an investment of 10 billion yuan ($ 1.52 billion) in the phase initial.
The total investment amount is estimated at $ 10 billion over the next 10 years, according to the company. Lei Jun, CEO and founder of Xiaomi; will also be the CEO of the intelligent electric vehicle business.
“Xiaomi hopes to deliver quality smart electric vehicles to enable anyone in the world to enjoy smart life anytime, anywhere,” the company said in a statement on Tuesday.
With its cash reserves totaling 108 billion yuan (over $ 16 billion) at the end of 2020, the company can afford to expand its smart electric car unit, Lei said.
Other strengths that will drive the company forward include its strong mobile phone business, smart ecosystem, and 10,000-strong research and development team, and 5,000 more will be hired this year, according to Lei. .
At present, Xiaomi has 834 automotive-related patents, including cruise control, vehicle control, navigation and parking information forecasting, according to information reported by the “National Business Daily ” this Wednesday.