Xiaomi Enters Electric Vehicle Business With A $1.5 BN Capital

Chinese electronic giant Xiaomi has officially entered the electric vehicles market (EV) after completing its registration. Announcing the news on Weibo, the company said it’s starting the venture with a capital sum of 10 billion yuan ($1.55 billion) and 300 employees on board.

In its post, the company said, its EV team “conducted a large of user research and industry chain inspection” and carefully selected 300 employees out of 20,000 resumes to start its electric car project.

Xiaomi has seen its market presence spiral upwards lately becoming a leading global smartphone brand. The Beijing-based company has also become a fans’ favorite for TVs recently. With its foray into the EV market, Xiaomi is adding an entity into its IoT portfolio.

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Xiaomi’s EV business would be headed by the company founder and CEO Lei Jun. The entrepreneur said the company accumulated 108 billion yuan in cash reserves by 2020. This has enabled the company to try its luck into the electric car business.

Xiaomi Not Leaving A Stone Unturned

The company has steadily won over consumers’ trust due to its commitment to quality products and reliability. Likewise, Xiaomi wouldn’t take any risk into EV business either. After announcing its plans for mass-market EV business last March, the company says its EV team has extensively conducted user research over the past five months and paid visits to industry partners to guide their own shape for the venture.

There are unsubstantiated rumors that Great Wall Motors would join hands with Xiaomi for engineering support to accelerate the project. GizmoChina also claims that Xiaomo is looking for a reliable partner to collaborate and spearhead the electric car project soon.

Xiaomi recently became the world’s largest smartphone brand for shipment. Its leading mobile markets in 22 regions and Mi TVs have gone global. Xiaomi has usurped itself from a minor software startup to a global electronics company.

Xiaomi is a go-to brand in Nepal right now for its affordable quality smartphones, TVs, and other IoT products/accessories. Which product from Xiaomi do you own? Do let us know your satisfaction with it.