Xiaomi's EV or electric vehicle business is now officially registered in China. It comes as the Chinese tech giant touts the new division to be at the "substantial development phase."
A man walks past a Xiaomi store in Beijing on January 15, 2021, as shares in the company collapsed on January 15 after the United States blacklisted the smartphone giant and a host of other Chinese firms.
As per CNBC, the newly registered subsidiary of the top Chinese phone maker is carrying the name Xiaomi EV, Inc. What's more, the additional division of the tech giant was set up with a whopping $1.55 billion or 10 billion yuan.
It is to note that Xiaomi shared its vision to enter the crowded electric car market last March 26.
As such, the Chinese phone maker will be going against prominent names, such as Tesla and BYD. Not to mention that China also has its fair share of EV startups, including Xpeng and Nio.
The CEO of Xiaomi, Lei Jun, previously disclosed that his company has had talks with the latter about a collaboration project.
Xiaomi EV Business Registration in China
According to Yahoo Finance, the Xiaomi CEO represented the company during the registration that the company confirmed on Sept. 1.
The Chinese phone maker, which emerged to beat both Samsung and Apple in terms of smartphone sales in August, further said that they have already hired about 300 employees to work at its now-registered EV division. Xiaomi added that they are still hiring talents to add to the growing team.
On top of that, the China-based tech titan also mentioned that they have already conducted 2,000 surveys prior to its business registration. In addition to that, Xiaomi has met with ten industry partners for its latest endeavor as well.
Although the giant phone maker did not disclose more about its new division, its CEO further noted that the EV venture will serve as his "last major entrepreneurial project."
Read Also: Xiaomi Overthrows Apple, Samsung in Smartphone Sales Globally-But Growth Might be Temporary
Xiaomi and Electric Vehicles
A previous report by Carbuzz stated that it is not the first time that Xiaomi is venturing into producing vehicles.
For instance, the Chinese tech giant has already worked with an Italian luxury vehicle manufacturer in 2020 with its Ninebot GoKart Pro Lamborghini Edition.
Not to mention that before that, Xiaomi also helped produce an SUV as it teamed up with another Chinese company, the FAW group. The collab of the two China-based tech firms birthed the Bestune T77 Xiaomi Editions.
The SUV notably sported a Xiaomi voice assistant support in its infotainment system that flaunts a 3D holographic display. The XiaoAI that was used in the vehicle is commonly used in the Smart Home line of the tech giant.
It was further leaked by Reuters last March 26 that Xiaomi is planning to enter the EV business as its revenue from its popular smartphone line is not making significant profits.
However, it is to note that since then, the smartphones sales of Xiaomi is steeply increasing.
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This article is owned by Tech Times
Written by Teejay Boris
