Smartphone giant Xiaomi officially registered its electric vehicle business on Wednesday and added that its division, called Xiaomi EV, has entered a “fundamental development” stage with a staff of 300 and was set up with a previously announced capital of nearly 10 billion yuan (1.55 Billion dollar).
Last March, the Chinese company announced its plans to launch a business project specializing in electric cars and invest nearly $10 billion in it over the next decade, as the company revealed some partnerships related to the auto industry. Read More [Xiaomi Will Make Electric Cars At The Great Wall Factory], and the new project will be headed by the company’s founder and CEO named “Lei Jun“.
Xiaomi said that the electric vehicle team has conducted a huge amount of user research over the past five months, and the company has also visited partners in the same field, coinciding with the formation of the project team, which is still in the process of revealing the vehicle it is developing.
Xiaomi, which is famous for its smartphones and other devices that connect to the Internet, is trying to enter a crowded and highly competitive market in China, facing emerging companies such as Nio and Xpeng as well as other global companies such as Tesla and China’s BYD backed by Warren Buffett.
Xiaomi also announced earlier this month that it had acquired the self-driving technology company Deepmotion for about $77.37 million, with the aim of enhancing the technical competitiveness of its electric vehicle business. Read more [Xiaomi Acquires Deepmotion To Support Its Startup Business].
Following the news, Xiaomi shares rose 1.4% in afternoon trading in Hong Kong, outperforming its Hang Seng index.