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Xiaomi Plans $15 Billion Foray into Electric Cars

Tiger Newspress2021-03-30

(March 30) (Bloomberg) -- Xiaomi Corp. plans to invest about 100 billion yuan ($15 billion) over the next three years to manufacture electric cars, a person familiar with the matter said, embarking on its biggest-ever overhaul to enter China’s booming EV market.

The Chinese smartphone maker is the latest to pile into an already crowded arena, where an array of automakers from Tesla Inc. to local upstarts Nio Inc. and Xpeng Inc. are battling for a slice of the world’s biggest EV market. Search giant Baidu Inc. and Geely Automobile Holdings Ltd. are also said to be teaming up to build electric cars. EV sales in China may climb more than 50% this year alone as consumers embrace cleaner automobiles and costs tumble, research firm Canalys estimates.

Xiaomi joins fellow tech giants from Apple Inc. to Huawei Technologies Co. in targeting the vehicle industry, betting cars of the future will grow increasingly autonomous and connected. Xiaomi will invest about 60% of the envisioned sum and plans to finance the rest, said the person, who asked not be identified because the plans are private. The smartphone maker had just under 100 billion yuan of cash and equivalents at the end of 2020.

The Beijing-based company will outsource car assembly to contract manufacturers, a model it uses for its smartphones, according to the person. Xiaomi relies on contract manufacturers such as Taiwan’s Foxconn Technology Group to make its mobile devices.

However, the company has no plans to choose “established” automakers for its manufacturing partners, the person said. Great Wall Motor Co. last week rejected a Reuters report it will help Xiaomi make EVs.

Billionaire Xiaomi co-founder Lei Jun led a review of the EV industry’s potential several months ago and a final decision to enter the arena was made in recent weeks, said another person familiar with the matter. Xiaomi has already hired engineers to work on software to be embedded in its cars, the person added.

It’s venturing into unfamiliar territory. Founded by Lei more than a decade ago, Xiaomi became the fastest-growing smartphone maker in China in the fourth quarter of last year after Huawei found it difficult to source key chips because of U.S. sanctions. Beyond phones, it’s best known for running internet services and making a range of cut-price home gadgets from rice cookers to robo-vacuums.

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Comment37

  • Grednana
    ·2021-06-22
    Wow! Great!
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  • Vested vested vested $XIAOMI-W(01810)$小米快變大米! [開心] 
    Reply
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  • w8w8
    ·2021-03-30
    Crowded market
    Reply
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  • leongsiak
    ·2021-03-30
    EV is still the hottest topic
    Reply
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  • Cop
    ·2021-03-30
    Buy stock follow the rhythm in regardless of the FA 
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  • albert77
    ·2021-03-30
    Wel done
    Reply
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  • sunrise87
    ·2021-03-30
    huat!
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    • Ski58
      Huat!
      2021-03-30
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    • Hminnnn
      Huat!
      2021-03-30
      Reply
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  • Weiquan
    ·2021-03-30
    Everyone wants a piece of cake. What’s up next?Samsung EV,Huawei EV,Vivo EV etc
    Reply
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  • buckethead
    ·2021-03-30
    McDonald's? and KFC ?may want to build EV's too.  
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  • LUCILLEWANG
    ·2021-03-30
    Is this going to cause then to rise faster?
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  • 大白兔女生
    ·2021-03-30
    Not only Xiaomi, can start to look at automobile manufacturers too. 
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  • JettLam
    ·2021-03-30
    Wow this is interesting 
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  • CubTrader
    ·2021-03-30
    Time for Xiaomi to rise !!
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    • missreenaa
      Yesss hope they succeed!
      2021-03-30
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    • Khay
      go go XM!
      2021-03-30
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  • keaty
    ·2021-03-30
    Market abit too crowded ..... May not be so profitable in future....
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    • keaty
      Now Huawei is also getting in the game. Not much choice as phone segment is going nowhere. Chinese is not far behind Tesla, my hand is getting abit itchy ......... Any insights ??
      2021-04-13
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    • Sumei
      The pie may be large enough...
      2021-03-30
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    • Lynny
      Yes huge competition out there
      2021-03-30
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  • canoboi
    ·2021-03-30
    Good
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  • tseechu1
    ·2021-03-30
    Xiaomi all the way [強] 
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  • LemonTrader
    ·2021-03-30
    Nice
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  • Vin309
    ·2021-03-30
    Great news
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  • EriViL
    ·2021-03-30
    Hmm...
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  • SufiTrades
    ·2021-03-30
    Good! Pls bring back EV boom price
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