Xiaomi to invest $10 billion in electric vehicle unit over 10 years

Chinese smartphone maker Xiaomi has formally entered the automotive industry with a new smart electric vehicle (EV) business, the company announced on Tuesday in a filing. The firm will initially invest CNY 10 billion (roughly Rs 11,211 crores) in the wholly-owned subsidiary, with a total investment goal of $10 billion (roughly Rs 73,600 crores) over the next ten years.

Xiaomi CEO Lei Jun will also serve as CEO of the smart electric vehicle unit, the company added. The company’s move into the EV industry follows similar steps by other tech giants, both in China and overseas. In January, Chinese search giant Baidu announced it would develop an EV unit via a partnership with domestic car maker Geely Automobile Holdings.

In February, Reuters reported that beleaguered Chinese smartphone giant Huawei Technologies is currently in talks with state-owned automaker Changan Automobile and other companies to manufacture EVs. Apple has also long been planning an entry into the EV market, according to reports.

Apple Inc has also long been planning an entry into the EV market, according to reports.