Biz / Tech

Xiaomi to invest US$10b in electric cars

Zhu Shenshen
Electronics firm to establish a wholly owned subsidiary to tap into the booming business with the offer of high-quality smart vehicles to consumers around the world.
Zhu Shenshen
Xiaomi to invest US$10b in electric cars

Xiaomi Corp is to invest US$10 billion in the electric car business in the next decade, the Hong Kong-listed company said in a statement on Tuesday.

It will establish a wholly-owned subsidiary for electric cars with an initial investment of 10 billion yuan (US$1.59 billion), rising to US$10 billion in the long term, the company said in a statement.

Lei Jun, Xiaomi’s CEO, will be head of the new business.

“Xiaomi hopes to use high-quality smart electric vehicles to allow users around the world to enjoy a ubiquitous smart life,” Xiaomi said.

Xiaomi’s car is expected to connect with its devices, from smartphpones to wristbands and tablets.

It’s the first time for an electronics firm to tap into the booming electric car business.

Apple and Huawei are said to be entering the sector. But Huawei has denied reports, saying it won’t be making cars directly.

On Monday, Xiaomi released its latest Xiaomi 11 smartphone aimed at the high-end market.

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