Xiaomi Blatantly Overtakes Tesla's Market, Ready To Produce 300,000 Electric Cars

Xiaomi said it would spend $10 billion on its new electric car division. (photo: Enter21ST)

JAKARTA - Xiaomi seems really ambitious to challenge Tesla. It looks like the company is planning to build a factory that can produce 300,000 electric vehicles (EVs) per year in Beijing.

Last month, Xiaomi CEO Lei Jun hoped the company could mass-produce electric vehicles by 2024 and this newly announced factory would help achieve that goal.

According to reports, the plant will be built in two phases, but details are not yet known. It was also revealed that Xiaomi will establish an EV headquarters, sales and research office in the Beijing Economic and Technological Development Zone.

Citing Reuters, Monday, November 29, earlier in March, Xiaomi said it would spend 10 billion US dollars or equivalent to Rp. 143 trillion on its new electric car division over the next decade. The disbursement of the funds was revealed after Xiaomi completed business registration for the EV unit.

With its EV division, Xiaomi also plans to fight against companies like Tesla and Xpeng. China is one, though not the biggest, market for EVs so it should be doing pretty well there.

If the company decides to bring its vehicles to the international market, it may or may not work due to the very strong sentiment towards China in some countries, including the US.

Xiaomi itself is famous for its cellphones and smart devices that are quite pocket-friendly, most likely its electric car is also an alternative for those who want to have an electric car at a low price.

For information, the company has also opened thousands of stores to spur domestic sales growth in its smartphone business but it is likely that Xiaomi will use these stores as a platform for its plans to sell electric vehicles.