After weeks’ worth of rumors circulating on Twitter, tech giant Xiaomi has officially announced plans to enter the electronic vehicle (EV) business with an investment exceeding $10 billion over the next decade.
BREAKING NEWS
Say hello to #XiaomiSmartElectricVehicles.
Get all the information at our #XiaomiMegaLaunch Part II tonight! 19:30 (GMT+8), 2021! pic.twitter.com/gq3Kue2pF1
— Xiaomi (@Xiaomi) March 30, 2021
The company has stated that the first phase of the project will incorporate 10 billion yuan, roughly $1.52 billion, and the current Xiaomi chief Lei Jun will spearhead the EV subsidiary as its CEO.
The usual rumor mill suggests that the new subsidiary will most likely collaborate with major Chinese automaker Great Wall Motors to manufacture EVs. For the time being, the brand has yet to confirm this.
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Overall, the EV business has swiftly taken off in China thanks to encouraging support from the government and associated auto-manufacturing companies in the region.
With a plethora of Chinese tech giants fervently poised to make entry into the EV market, prominent research firm Canalys predicts that more than 1.9 million electric vehicles will be sold in the country this year, constituting a mammoth 51% growth as compared to 2020.
