Xiaomi's EV unit will have to become a top five player to succeed, founder says...

Xiaomi's EV unit will have to become a top five player to succeed, founder says

Xiaomi's EV unit will have to become a top five player to succeed, founder says

15 hours ago

Chinese smartphone maker Xiaomi must become one of the world’s top five EV makers if it wants to succeed in electric vehicle (EV) business, chief executive Lei Jun said on Thursday.

“The entry barrier of EVs is much lower compared to petrol cars. As the development of electric vehicle progress, the competition is going to be brutal.” Lei said in a statement posted on Chinese microblogging site Weibo.

To give one proof of this, Lei highlighted that the cost of batteries has dropped by 80 per cent in the past 10 years.

Lei refereed EVs as a form of consumer electronic, “auto industry will evolve from mechanics to consumer electronics.”

In order for Xiaomi to become one of the top 5 global players, the company will have to ship more than 10 million cars annually, Lei stressed.

That is an ambitious target, considering Tesla manufactured around 250,000 units globally in the second quarter.

Previously, Lei Jun said Xiaomi will mass produce its own electric vehicle in the first half of 2024. In March 2021, Xiaomi joined its peers such as Baidu into the electric car race after it announced to launch an electric vehicle business unit and invest USD10 billion into it over the next 10 years. Then in September 2021, Xiaomi has completed the official business registration of its electric vehicle unit, the headquarter will locate at Beijing Econmic-Technological Development Area commonly known as Beijing’s Yizhuang new town.

Xiaomi’s plant, its auto unit’s headquarters, as well as sales and research offices will locate at Beijing Econmic-Technological Development Area. The car factory will be constructed in two phases and it is expected to reach mass production in 2024.

Beijing’s Yizhuang new town is home to the facilities of several tech companies, including, e-commerce company JD.com, Baidu, China’s top chip foundry Semiconductor International Manufacturing Corporation

SHARE