Xiaomi Strengthens Electric Car Business, Now Has Two Companies

JAKARTA - The news that Xiaomi plans to enter the smart electric vehicle or EV industry at the beginning of this year is quite surprising. Because usually, the company only focuses on smartphones and other smart devices.

Not long ago the Chinese tech giant registered Xiaomi Automobile Co., Ltd last September. To strengthen its business line, the company re-registered its second car company, dubbed Xiaomi Automobile Technology Co., Ltd.

The Beijing-listed company has a registered capital of 1 billion yuan. The registered capital is one tenth of the previous Xiaomi Automobile Co with 10 billion yuan.

Reporting from Gizmochina, Saturday, November 20, Xiaomi Automobile Technology has a larger business scope, covering new energy vehicles, vehicle manufacturing, technology development, and others.

It is likely that this new company will handle peripherals and accessories, while the first company will be in charge of the actual manufacturing of electric vehicles.

Xiaomi officially announced that it will produce the car at the end of March this year. The company plans to establish a wholly owned subsidiary to be in charge of the smart electric vehicle business.

The initial investment is 10 billion yuan. However, the company will invest about 60 billion yuan in the next 10 years. Xiaomi founder Lei Jun will double as CEO of the smart electric vehicle business.

Not long ago, Lei Jun revealed that the company is expected to start mass-producing its own EVs in the first half of 2024.