Smartphone maker Xiaomi has registered its electric vehicle business with a capital of $1.55 billion, marking its official foray into the global electric vehicle market.
|Xiaomi will spend $10 bililon on its electric vehicle ambitions over the next decade |
The name of the subsidiary is Xiaomi EV, Inc and it is led by Lei Jun, founder, chairman, and CEO of Xiaomi. This move marks a key milestone of the much anticipated smart electric vehicle (EV) initiative, the company said.
The Beijing-headquartered firm first announced its EV ambitions in March and has committed to investing an estimated $10 billion in total in EV business over the course of the next 10 years.
The Xiaomi EV team has carefully selected talents and formed a team of about 300 employees. During the five months from the announcement of the Xiaomi EV initiative to the official registration of the subsidiary, the team has conducted a massive amount of user research and industry chain inspections, with more than 2,000 interview surveys and visits to over 10 industry peers and partners, while pressing ahead with the EV product definition and team formation.
In addition, Xiaomi announced its acquisition of autonomous driving technology company Deepmotion Tech in August to build automotive-related technologies and talents.
Like Xiaomi, many giants are also betting on EVs around the world. In the US, while taking different strategies, rival smartphone manufacturers Apple and Google both have designs for participation in the industry. While Apple is likely to launch its own self-driving EV, Google has indicated that it wants to focus on self-driving technology via its Waymo division.
Vingroup, the largest conglomerate in Vietnam, is also channelising its resources to capitalise on the fast-growing field. The company's VinFast auto division began with e-scooters and has since expanded to include electric automobiles and buses. It is supposed to start taking orders for electric sport utility vehicles in November, with delivery in 2022 in North America and Europe.
According to BloombergNEF’s Economic Transition Scenario, passenger EV sales are projected to increase sharply, rising from 3 million in 2020 to 66 million in 2040. Globally, EVs will represent more than two-thirds of passenger vehicle sales in 2040. Europe and China are leading the transition.