SHANGHAI: Chinese language smartphone maker Xiaomi Corp has formally entered the automotive trade with a new smart electric vehicle (EV) enterprise, the corporate introduced on Tuesday in a submitting.
The agency will initially make investments 10 billion yuan ($1.52 billion) within the wholly-owned subsidiary, with a complete funding objective of $10 billion over the subsequent ten years.
Xiaomi CEO Lei Jun will even function CEO of the sensible electrical automobile unit, the corporate added.
The corporate’s transfer into the EV trade follows comparable steps by different tech giants, each in China and abroad.
In January, Chinese language search large Baidu Inc introduced it could develop an EV unit by way of a partnership with home automobile maker Geely Vehicle Holdings Ltd.
In February, Reuters reported that beleaguered Chinese language smartphone large Huawei Technologies Co Ltd is at the moment in talks with state-owned automaker Changan Automobile and different corporations to fabricate EVs.
Apple Inc has additionally lengthy been planning an entry into the EV market, in keeping with reviews.
Final week Reuters reported completely that Xiaomi was in talks to associate with Chinese language automaker Nice Wall Motor Co for assist in manufacturing EVs.
Xiaomi declined to touch upon the report, whereas Nice Wall stated in an trade submitting that it had not mentioned such a partnership with Xiaomi.
