Xiaomi had trouble getting a manufacturing license for its electric vehicle (EV) project, according to reports. After several new EV companies failed in recent years, the Chinese government tightened requirements for licenses.
EVs made it easy for Chinese companies to get a special license to make cars. China had tens of new companies receiving government financial aid only to fail and disappear.
According to a report, Xiaomi was late to apply for its manufacturing license under old rules, and the strictness of new rules became an obstacle for the firm.
To expedite the process, Xiaomi took over Borgward, a bankrupt German company. Borgward’s acquisition should allow Xiaomi to begin manufacturing cars soon, the report added.
The company has invested $1.5 billion in EV development and built a factory in Beijing capable of producing 300,000 units annually. The report adds that, with its resources, Xiaomi should easily obtain the permit and begin manufacturing EVs soon.
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