China’s Xiaomi to start electric powered automobile business and make investments $10 billion

GUANGZHOU, China — Chinese smartphone giant Xiaomi has announced strategies to launch an electric powered motor vehicle company and make investments $10 billion over the future 10 a long time.

The firm will set up a wholly-owned subsidiary and the initial phase of financial commitment will whole 10 billion yuan ($1.52 billion), it mentioned Tuesday.

Xiaomi Main Government Lei Jun will also be the CEO of the auto unit.

“Xiaomi hopes to provide good quality wise electrical motor vehicles to permit anyone in the environment delight in clever living whenever, anywhere,” the firm claimed in a statement.

The Chinese technological know-how business, which is the world’s third-largest smartphone maker, is jumping into an very aggressive space in China.

Not only is Xiaomi competing with founded automakers in the state, these types of a Geely and Warren Buffet-backed BYD, but also upstarts this kind of as Nio and Xpeng Motors.

And internet businesses are also moving into the smart electric auto arena. Chinese look for large Baidu introduced a standalone electric car organization in January and previous thirty day period employed a CEO for that business.

Electric cars have taken off in China many thanks to potent policy assist from Beijing, which includes subsidies. Even although some of these actions have been lowered, investigate company Canalys forecasts that 1.9 million electrical cars will be marketed in China in 2021, symbolizing 12 months-on-year growth of 51%.