Xiaomi announces official debut of electric vehicle business

Xiaomi Corp announced the official debut of its electric vehicle (EV) business on Wednesday with an initial investment of 10 billion yuan (US$1.56 billion).

The Hong Kong-listed company announced that Xiaomi EV Inc has completed business registration with a registered capital of 10 billion yuan. Lei Jun, the founder, chairman, and CEO of Xiaomi, is the legal representative of Xiaomi EV.

Xiaomi, the world's second-leading smartphone brand, called it "a company milestone" to enter this monumental development phase.

Over the next decade, Xiaomi will invest US$10 billion into its EV business, with an initial investment of 10 billion yuan, according to Lei, who is also the EV team leader.

To date, the Xiaomi EV team has over 300 employees and is still recruiting new members. In recent months, Xiaomi has received over 20,000 applications from individuals seeking to join the new team.

The Xiaomi EV team has conducted user research and industry chain inspections, with more than 2,000 interview surveys and visits to more than 10 industry peers and partners.

With its entry into the EV market, the company hopes to revitalize the automotive industry and manifest its potential to connect devices and electric cars.

Last month, Xiaomi announced the acquisition of an autonomous driving technology company, Deepmotion Tech, with a deal valued at US$77.4 million.