Xiaomi has planned to invest USD 10 billion over the next ten years in its electric vehicle operations; the first EV could be an SUV or a sedan
Xiaomi’s CEO and co-founder Lei Jun recently announced that his company has registered a new subsidiary under the name Xiaomi EV, Inc. marking the foray into the electric vehicle segment. Back in March 2021, Xiaomi revealed its intentions to step into the burgeoning zero-emission space and Xiaomi EV will be operated under a subsidiary brand fully owned by Xiaomi.
An initial capital of 10 billion Yuan has been pegged and the entire EV business will see around USD 10 billion over the next ten years. Jun will head the EV division as well and he said it will be the final major entrepreneurial project of his life. He further noted that he is willing to put all his personal reputation on the line and “fight for the future” of his smart EVs.
Xiaomi has not unveiled any specifics into how the zero-emission vehicle will look like and how it will be conceived and the all-important launch timeline. However, the earmarked investments show that it is fully committed to venture into the new space. Last year, Xiaomi revealed Suzuki Jimny 1:16 scale version operated via Bluetooth connectivity.
Earlier this year, Segway released its Apex H2 concept as a hydrogen-powered motorcycle and the American company was acquired by Beijing-based startup Ninebot, which is funded by Xiaomi. A few days ago, Xiaomi acquired a self-driving technology-based brand called Deepmotion and the deal was announced in its earnings call for the first quarter of this FY.
This shows Xiaomi’s intention to develop autonomous driving technologies and the company has a team of 500 people working on the EV project reportedly. While no official confirmation has been made yet, the first eco-friendly vehicle from Xiaomi EV Inc will likely be an SUV or a sedan and it could be priced between CYN 100,000 (Rs. 11.31 lakh approx) and CYN 300,000 (Rs. 33.93 lakh approx).
Recent reports suggest that the Apple Car could be mass-produced as early as 2024 and the American brand is currently in talks with Asian suppliers. We will see more activity from tech giants looking to venture into the EV space as the opportunities are wide open.