Chinese Xiaomi Completes Registration of Electric Vehicle Unit, Auto News, ET Auto

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The smartphone maker, which became the world’s second best-selling brand behind Samsung in the second quarter, confirmed its foray into electric cars in March, pledging to invest $ 10 billion over the next 10 years.

By Josh Horwitz

SHANGHAI: Chinese smartphone giant Xiaomi Corp announced on Wednesday that it has completed the official registration of its electric vehicle unit, marking the latest milestone in its automotive breakthrough.

The new unit, which will be called Xiaomi EV Inc, opened with registered capital of 10 billion yuan ($ 1.55 billion) and Xiaomi CEO Lei Jun as legal representative said Xiaomi in a statement.

Some 300 people have so far been employed to join the EV unit and it continues to recruit talent, he said.

The smartphone maker, which became the world’s second best-selling brand behind Samsung in the second quarter, confirmed its foray into electric cars in March, pledging to invest $ 10 billion over the next 10 years.

Lei said at the time that the electric vehicle surge would mark his “last big entrepreneurial venture.”

Xiaomi said on Wednesday that it has conducted more than 2,000 interview surveys and visited more than 10 industry peers and partners. However, he has revealed few details on his strategy for the auto industry or the types of vehicles he plans to launch.

Last week, the company announced that it had bought autonomous driving technology startup Deepmotion for more than $ 77 million, in a bid to boost research and development.

Earlier in August, Reuters reported that Xiaomi had started talks with beleaguered real estate giant Evergrande Group to buy a stake in the latter’s auto unit.

In response to the news, a spokesperson for Xiaomi wrote on the company’s social media account that he was in contact with several car manufacturers but had not yet decided which one to work with.

Xiaomi’s profits in the second quarter of last week topped analysts’ estimates, with revenue and net profits increasing by 64% and 87.4% respectively. The company’s share of the global smartphone market has jumped following the withdrawal of its main rival, Huawei Technologies Co Ltd in the face of sanctions from the US government.

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In March, Xiaomi announced that it would spend $ 10 billion to enter the electric vehicle business. The company has yet to officially announce a partnership or plan for its first model, although public posts on job search sites show the company is aggressively recruiting talent.

The deal comes as the company prepares to enter the electric vehicle market, reports GizmoChina. Deepmotion develops driver assistance software.


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