Xiaomi poured $ 10 billion into electric cars

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2021-03-31 15:19:39

Chinese smartphone company Xiaomi has announced that it will invest $ 10 billion over the next decade in a subsidiary specializing in “smart electric cars”.

In the information listed on the stock market, Xiaomi said that the newly established subsidiary will be run by Xiaomi’s CEO – billionaire Lei Jun. The initial investment amount poured into this subsidiary will be 10 billion RMB, equivalent to 1.5 billion USD.

Xiaomi is one of the largest smartphone manufacturers in the world, but also makes many other devices, from home security cameras, shavers, electric toothbrushes, light bulbs, watches, to cars. scooter. Xiaomi has not yet announced the details of its strategy to enter the auto industry, so it is not clear whether it will focus on making cars or making software, or both.

Regardless of the plan, Xiaomi will face a huge number of competitors that are ambitious companies that build large-scale electric cars, including relatively new names like Tesla. and also traditional car manufacturers such as Volkswagen and General Motors (GM). These companies have many years of researching, developing and bringing to the market electric cars to convince consumers to open their wallets.

Earlier this year, there were even rumors that the US tech firm Apple was about to officially announce its plans to produce electric cars, possibly through a partnership with a longtime brand.

With the growing trend of the auto industry being electric and smart vehicles, a number of major tech companies in recent years have joined hands with carmakers, hoping to capture great potential in the market for automotive software applications such as driverless vehicles.

“The transition to electric cars is only just beginning,” said Dan Ives, analyst at Wedbush Securities, in a recent report.

“The electric car sector has the potential to become a $ 5 trillion market in the next decade. With GM, Ford, Volkswagen … all investing deeply in this sector, it can be seen that the world’s demand for Electric car technology will explode in the future, “said Mr. Ives.

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