Chinese tech giant Xiaomi has secured approval from the National Development and Reform Commission (NDRC) to manufacture 100,000 electric vehicles annually. The approval is a major milestone for Xiaomi’s ambitious venture into electric vehicle manufacturing.
Xiaomi Secures Approval to Manufacture 100,000 Electric Vehicles Annually
Xiaomi’s founder, Lei Jun, announced the company’s entry into the smart electric vehicle market in 2021. He pledged an investment of $10 billion over the next ten years and set a goal of mass producing its first cars by the first half of 2024.
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The NDRC’s approval is a significant step forward for Xiaomi, but the company still needs the approval of the Ministry of Industry and Information Technology (MIIT) before it can begin production. The MIIT is responsible for assessing the technical and safety aspects of new vehicles.
Xiaomi’s entry into the electric vehicle market comes as the company faces challenges in its traditional smartphone business. First-quarter revenue declined by 18.9% year-on-year, and the company is looking to diversify its portfolio.
The EV market is growing rapidly in China, and Xiaomi is hoping to capitalize on this growth. The company has a strong retail network, which it plans to use to sell its electric vehicles.
Xiaomi’s entry into the EV market is a major challenge, but the company is determined to succeed. The company has a strong track record of innovation, and it is confident that it can create a competitive electric vehicle.
Here are some additional details about Xiaomi’s electric vehicle venture:
- The company has already built a factory in Beijing that is capable of producing 200,000 vehicles annually.
- Xiaomi has hired over 1,000 engineers for its EV project.
- The company has partnered with several Tier 1 suppliers, including Bosch and Magna.
- Xiaomi plans to launch its first electric vehicle in 2024.
The future of Xiaomi’s electric car venture is uncertain, but the company is off to a good start. With its strong financial resources, innovative culture, and extensive retail network, Xiaomi has the potential to be a major player in the EV market.
