Xiaomi Corporation, a multinational electronics company headquartered in Beijing, China, has announced that it will set up a new subsidiary for a smart electric vehicle business. Following an initial investment of US $1.5 billion, the mobile phone maker plans to invest a total of US $10 billion over the next decade. Lei Jun, CEO of Xiaomi, will serve as the CEO of the new electric vehicle business.
During the company’s March 2021 launch event, it was revealed that Xiaomi’s executive team only started to explore the possibility of the group’s own electric vehicle business in January this year. After seventy-five days of communication within the company and with industry experts, the company decided to commence its electric vehicle business.
“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,” stated Lei Jun. “I am willing to put all my personal reputation on the line and fight for the future of our smart electric vehicle! I am determined to lead my team to fight for the success of the Xiaomi electric vehicle.”
According to its latest financial results, Xiaomi’s global smartphone shipments reached 146 million, upholding the company’s position in the top three globally. The sales of premium smartphones have exceeded ten million units. TV sales have topped the mainland China market for eight consecutive quarters. And with over 324.8 million connected devices on Xiaomi’s AIoT platform and monthly active users for XiaoAi AI Assistant reaching 86.7 million, Xiaomi continues to lead the smart home industry. By the end of 2020, the company held a cash reserve of RMB 108 billion (US $16.5 billion).
In addition to the financial support, the company is also said to have an R&D team of over 10,000 members, with 5,000 more to be added this year.
“Smart electric vehicles represent one of the largest business opportunities in the next decade and represent an indispensable component of smart living. Entering this business is a natural choice for us as we expand our smart AIoT ecosystem and fulfil our mission of letting everyone in the world enjoy a better life through innovative technology,” Lei Jun concluded.