Xiaomi is known to be one of the biggest smartphone brands in the world. Although it is known more for its smartphones, it also produces laptops, mobile apps, consumer electronics, bags, shoes, home appliances, etc. The company recently released results for the second quarter; it experienced a 64 percent increase in revenue (YoY) and also announced that it was acquiring automated driving startup DeepMotion as part of its plans to fully launch its electric vehicle business. It eventually purchased the startup for $77 million – with the acquisition it plans to boost research and development as well as take the lead in the EV space.
On Wednesday, Xiaomi announced that it had officially concluded the registration of its electric vehicle unit and has officially launched into the automotive industry. The new business unit will go under the name Xiaomi EV Inc. According to Xiaomi’s CEO Lei Jun, the EV unit started with a registered capital of 10 billion yuan, the equivalent of $1.55 billion. He also revealed that the unit has already employed 300 staff and that the recruiting process will still be ongoing.
Xiaomi has a history of producing user-friendly and highly competitive consumer products and has taken itself from where it started to be one of the top brands in the world. Currently, Xiaomi stands behind Samsung as the world’s second-largest smartphone vendor, overtaking Apple which once occupied the position. Xiaomi first confirmed its plans of establishing an EV unit in March of this year. The company said that it would launch its own electric car business and invest the sum of $10 billion for the next ten years, and raised $1.2 billion through debt issuance.
Apart from its Wednesday announcement that it had officially registered its EV business unit, Xiaomi also mentioned that it had carried out more than 2,000 interview surveys and have visited at least 10 industry peers and partners – all these it did to ensure a sustainable EV business. The company has also revealed some information about the strategies it plans to employ for its EV business unit.
Xiaomi, with its EV business unit, plans to become one of the most sought-after EV brands in the world. It will be facing competitors like Tesla, Renault–Nissan–Mitsubishi Alliance, Volkswagen, and BYD.
Ibhadojemu Lucky Emmanuel is a graduate of Education and Economics from the University of Benin. He has a passion for tech and business and has been writing professionally for over a period of five years. He's written across various topics and segments and knew tech-business was it when he first stumbled on it. He has a great passion for music and arts, and wants to visit as many countries as he can someday.
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