Xiaomi announces, to invest $10 billion over ten years in smart EV business
Chinese smartphone maker Xiaomi Corp has officially entered the automotive industry with a new smart electric vehicle (EV) business, the organization announced on Tuesday in a filing.
The firm will at first invest 10 billion yuan ($1.52 billion) in the wholly-owned subsidiary, with a total investment goal of $10 billion over the following ten years.
Xiaomi CEO Lei Jun will also serve as CEO of the smart electric vehicle unit, the company said.
The organization's move into the EV industry follows comparable steps by other tech giants, both in China and overseas.
In January, Chinese search giant Baidu Inc declared it would develop an EV unit through a partnership with domestic car maker Geely Automobile Holdings Ltd.
In February, Reuters reported that ambushed Chinese smartphone giant Huawei Technologies Co Ltd is as of now in talks with state-owned automaker Changan Automobile and other organizations to manufacture EVs.
Apple Inc has also long been planning an entry into the EV market, as indicated by reports.
A week ago Reuters reported exclusively that Xiaomi was in talks to partner with Chinese automaker Great Wall Motor Co for help in manufacturing EVs.
Xiaomi declined to comment on the remark, while Great Wall stated in an exchange filing that it had not discussed such a partnership with Xiaomi.