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| Xiaomi will mass produce cars in 2024 |
A Xiaomi spokesperson said at an investor event that the Chinese smartphone manufacturer will mass-produce its own cars in the first half of 2024. The company's head of international marketing also shared the news via the official account of the Chinese Weibo platform.
This is not the first time the company has talked about entering the electric vehicle market. The company announced that it will reach the milestone in the first quarter of 2021. The company's president named electric vehicles as one of the biggest business opportunities for the next decade at his May earnings conference.
The date marks the next big target for the company's relaunched electric car division, which Xiaomi officially announced earlier this year.
The company announced in March that it would invest $10 billion in the new electric vehicle business over the next 10 years.
At the end of August, the company completed the registration of the activity of its electricity division. It also acquired DeepMotion, a company dedicated to self-driving technology.
Enhancing the recruitment of units. However, it is not known whether it will produce the cars independently or in partnership with existing automakers.
The news came after iPhone maker Foxconn announced three electric vehicle prototypes. He plans to assemble electric cars for carmakers and smartphones for Apple.
Xiaomi enters the field of electric cars
Other major tech companies have also announced plans to buy electric cars. Chinese search engine company Baidu has announced plans to enter the electric car market in January.
Apple also wants to enter the electric car market. However, he declined to comment on his car plans on several occasions.
These announcements mean that the electric car industry can be competitive within a few years. Automakers such as General Motors and Tesla, as well as many technology companies, can compete for market share.
While the $10 billion projected by the Chinese company sounds great, in reality it seems easy for a multi-billion dollar automaker.
Volkswagen plans to spend more than $80 billion on electric vehicles by 2025. General Motors will spend nearly $35 billion over the same period. Ford plans to spend about $30 billion in the next few years.
In addition, the $10 billion Xiaomi plans to invest is set to represent 20% of its estimated sales in 2021. GM's spending represents about 25% of its estimated sales. These numbers illustrate the difference in size between ambitious companies in the electric vehicle sector.