Xiaomi to invest $10bn in electric vehicle race

Xiaomi to invest $10bn in electric vehicle race
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Daily US Times: Chinese tech giant Xiaomi is wading into electric vehicle market with a $10bn investment over ten years.

The company’s goal is to “offer quality smart electric vehicles,” it said on Tuesday.

According to data firm Canalys, Xiaomi is the world’s third largest smartphone maker behind Apple and Samsung.

The company will be entering an intensely competitive electric vehicle market that also includes rivals Huawei and Apple.

The Chinese tech giant will set up a wholly-owned subsidiary with an initial investment of about $1.5bn, with the company’s chief executive Lei Jun heading up the new venture.

Mr Jun said in a statement: “The decision was made after numerous rounds of deliberation among all our partners, and this will be the final major entrepreneurial project of my life.”

So far, the company has given no indication about whether it will target the top end of the market or produce budget models.

In China, there are already hundreds of companies jostling for a share of the world’s leading market for electric cars.

Planned or existing models in China range from the tiny Hong Guang Mini EV, which retails for $4,500 to the new high-end electric brand Zeekr, which is owned by China’s biggest carmaker Geely.

Foreign manufacturers are also looking to build electric vehicles for Chinese consumers.

Tesla, one of the elading EV makes in the world, is already delivering its Model Y to China from its Shanghai factory, while Ford has plans to manufacture the electric version of its Mustang there.

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