Xiaomi is said to be facing delays in getting a license to make Electric Vehicles (EVs) of its own in China. According to Electrek, the company is now in talks with Beijing Automotive Group Co. (BAIC) to co-develop EVs to meet their goals of EV delivery to the market by 2024.
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BARCELONA, SPAIN - FEBRUARY 28: A logo sits illuminated outside the Xiaomi booth at the SK telecom booth on day 1 of the GSMA Mobile World Congress on February 28, 2022 in Barcelona, Spain. The annual Mobile World Congress hosts some of the world's largest communications companies, with many unveiling their latest phones and wearables gadgets like foldable screens.
Xiaomi's smartphone sales in China have dropped, which led to the company changing its course to maintain a steady stream of income; hence, it went into the EV industry. It was in March 2021 when the company shared its plans to manufacture its own EVs aimed at the mass market.
By September of the same year, Xiaomi registered as an EV company in China but was still searching for a partner in the manufacturing process to help them with the transition.
In November 2021, Xiaomi announced a signed contract with a committee from the Beijing Economic-Technological Development area to establish an automotive business in Yizhuang. Back then, the automotive brand said it would establish headquarters on the Beijing site, which will be constructed in two phases, each delivering production outputs of 150,000 EVs a year.
Almost a year later after that, there is still little progress, and which is also the reason they are considering co-branded EVs to fulfill the company's promise.
It is reported by Bloomberg that the two companies are exploring ways to collaborate. One strategy includes Xiaomi buying a stake in Beijing Hyundai No. 2 plant, a fully-licensed company to make cars in China. If this becomes successful, there could be EVs built by BAIC BluePark co-branded with Xiaomi Automobile.
The Search For an Automotive Partner
Xiaomi has shared its deep search for an automotive partner and admitted to 85 different industry visits, along with extensive meetings with over 200 automotive veterans.
With the news last year that it plans to have its own EV business park made it seem like the company decided to go it alone, however, it doesn't seem like it.
Xiaomi wants to have its own brand, but for that to happen, it must have an automaker as its partner to help it with things like R&D, testing, and production. The search for a partner is proving to be a lengthy process, which is why Xiaomi is now considering co-branded EVs.
Xiaomi's objectives are not like other automakers, and the company is not trying to compete with any other company. Rather, it wants to target a market that is overlooked by major manufacturers.
It seems that the best partner for Xiaomi to enter the EV market is with an existing carmaker, like BAIC because of their conformity to the manufacturer's line.
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Written by April Fowell
