MILAN, Aug 24 (Class Editori) — China’s state planner has approved smartphone company Xiaomi to produce electric vehicles. However, the Ministry of Industry and Information Technology needs to approve the decision as part of the formal procedure. Xiaomi is only the fourth Group to receive this kind of approval since 2017.
Initial plans for Xiaomi, established in 2010 by Lei Jun, included a 10-billion-dollar investment over a decade in the automotive industry and a very ambitious roadmap. Lei Jun is renowned as one of the most successful entrepreneurs of the new generation, having launched dozens of startups.
The goal is to produce the initial vehicles by mid-2024, though potential challenges may arise due to the economic climate.
According to the state-run Beijing Daily newspaper, Xiaomi has continued the construction of its car factory, despite not yet having obtained the necessary permits. The factories are expected to have the capacity to produce 200,000 vehicles annually.
Xiaomi plans to produce roughly 100,000 electric cars in the coming year as per sources reported by Reuters. As a result, it has intensified the need to hire more workers for the plant and possibly accelerate production by year-end.
Xiaomi’s venture into the electric vehicle industry is driven by its struggles in the smartphone market. During its quarterly earnings report in May, Xiaomi disclosed an 18.9% decrease in revenue.
Smartphone sales in China decreased by 4% year-on-year during the period, marking the lowest quarterly figure since the second quarter in 2014, according to Counterpoint. The widespread presence of the company’s stores across China is poised to facilitate showrooms for new electric cars.
(Source:Class Editori)
Notice: No person, organization and/or company shall disseminate or broadcast the above article on Xinhua Silk Road website without prior permission by Xinhua Silk Road.
A single purchase
