Xiaomi to Enter EV Industry, to Invest $10 Billion Over 10 Years

Xiaomi Corporation has officially announced its plan to enter into the electric vehicle (EV) industry. The company has announced an investment of USD 10 billion in smart EVs over 10 years, escorting in the new Xiaomi.

According to the Founder, Chairman, and CEO of Xiaomi, Lei Jun, the new business will be operated under a Xiaomi wholly-owned subsidiary with an initial investment of RMB 10 billion. Also, Lei Jun will concurrently serve as the CEO of the smart EV business.

The firm claims that Xiaomi is at its prime and has set a foundation for it to break new ground and commence building its smart EV business. According to its latest financial results, Xiaomi’s global smartphone shipments reached 146 million, upholding the company’s position in the top 3 globally. By the end of 2020, the Group held a cash reserve of RMB 108 billion.

“The smart EV is the broadest race track in the next decade. It is an inseparable and crucial part that forms the smart ecosystem; It is an inevitable choice to expand the integrated ecosystem of AIoT smart living; It is also the only path for us to fulfill the vision of the company and to bring a better life to everyone through technology.

By stepping into a new domain, we will certainly encounter many challenges. The automobile industry features great complexity, a huge amount of investment, a long product cycle, and low fault tolerance, which requires us to treat it with full respect and seriousness. Facing these challenges with a fearful heart as if we are walking on thin ice,” Lei Jun expressed.

Also, on the same day, Xiaomi released the brand new Xiaomi logo and added the logo with the letters “xiaomi”.