Chinese consumer electronics giant Xiaomi, on Tuesday (March 30), announced its entry into the connected electric vehicles (EV) space. The company’s board has already approved the plan, and it will now set up a wholly-owned subsidiary to operate the EV business.
The smartphone maker is looking to invest $10 Bn over the next year, with an initial investment of $1.5 Bn (or 10 Bn Yuan), to make this plan into a reality. Xiaomi will contribute about 60% of the envisioned sum and plans to raise the rest of the funds, according to the people familiar with the development.
“Xiaomi hopes to offer quality smart electric vehicles to let everyone in the world enjoy smart living anytime, anywhere,” the company has said.
Xiaomi’s CEO and cofounder Lei Jun added that the company has deep pockets for the project and they are fully aware of the risks of the car-making industry. “I’m also aware the project will take at least three to five years with tens of billions of investment,” he added.
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