Xiaomi plans first EV factory in Beijing suburb14. April 2022
Chinese smartphone maker Xiaomi begins planning for its first EV car factory, which is to be built in a suburb of Beijing. This is according to information from the local government. The venture marks an important step by the electronics giant to grab a slice of the lucrative EV market in China. Beijing-based Xiaomi signed an agreement with the Beijing Economic-Technological Development Area Committee to build the manufacturing plant, the local government said in a WeChat post. The plant is to be built in the Beijing suburb of Yizhuang. Xiaomi founder and CEO Lei Jun, company president Wang Xiang and government officials were present at the signing of the agreement. Vehicles and components must be awarded a CCC certificate in order for the products to be exported to China or manufactured locally.
The plans call for the Xiaomi plant to be built in two stages. Each stage is to have an annual production capacity of 150,000 vehicles. The first EV is scheduled to roll off the production line in 2024. In addition to production, the site will also house the headquarters of Xiaomi’s vehicle business, as well as a sales and research centre. The company did not disclose the amount of investment. Back in March 2021, Xiaomi, the world’s number three in smartphones, announced its entry into the EV business. Also in March, Xiaomi only mentioned to invest around 10 billion US dollars in the EV project over the next 10 years. Chinese tech companies such as Huawei and Baidu have been focusing on developing and producing EVs for the domestic market for some time. In the summer of 2021, Xiaomi announced the acquisition of DeepMotion, a specialist in autonomous car technology, for US$77.4 million. Xiaomi president Wang recently spoke positively about the progress of the EV business and that they had already hired 500 employees for the project.
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