The Chinese IT giant has taken the electric car business very seriously. The head of the company, Lei Jun, revealed some important details about the future of the brand.
The CEO of the Chinese IT giant noted that the development of the first car is proceeding at a fast pace – perhaps even faster than the company initially planned. In any case, the debut of the model is still scheduled for 2024. In particular, it is expected that the presentation will take place within the next few months and an advertising campaign will be rolled out closer to the end of next year.
The main challenge for the Chinese company is to show its electric car before Apple. “Apple” company, however, is not in too much of a hurry: the appearance of the Apple Car is not expected before 2025. In this case, as noted by the CEO of Xiaomi, the development of the automotive division will not affect the main line of business Xiaomi: the main source of income, as before, will remain smartphones.
And the company’s plans for the development of the automobile business, indeed, are very ambitious. For example, the brand intends to build a new plant capable of producing 300 thousand cars per year. Within the next 10 years the concern is going to invest in Xiaomi Auto about 10 billion dollars, and by 2027 the annual circulation should already exceed the mark of 1 million electric cars. Lei Jun sees its main competitors Geely, GAC, NIO and XPeng, which have long been well-established in the segment of electric vehicles.
It is worth noting that the location of the assembly site has already been determined. The management of the IT giant has decided to place the production of electric cars in Beijing (China). Also Xiaomi does not spare finances for the production of semiconductor chips for the automotive industry. For this purpose, Lei Jun invested in the young company Yuntu Semiconductor, which was founded in 2020 with registered capital of 6.2 million yuan.