A long time ago, there were rumors that Xiaomi would enter the electric vehicle industry, and now these rumors have been confirmed.
Now, Xiaomi Group has just issued an announcement on the Hong Kong Stock Exchange stating that the company’s board of directors has formally approved the electric vehicle business project. The company plans to establish a wholly owned subsidiary to be responsible for its electric vehicle business. The initial investment is RMB 10 billion, and the investment is expected to be USD 10 billion in the next 10 years. Mr. Lei Jun will concurrently serve as the CEO of the electric vehicle business.
Previously, Lei Jun stated on a talk show: ‘Xiaomi has a major project coming up and has prepared 10 billion US dollars.’ Xiaomi indeed has sufficient funds to invest in electric vehicle manufacturing. The latest financial report shows that in 2020, Xiaomi’s smartphone shipments reached 146 million units, annual revenue reached CNY 245.9 billion, and cash reserves exceeded CNY 100 billion.