Xiaomi will begin electric car business with $10 billion investment

On March 30, 2021, Xiaomi officially announced that it will establish a wholly-owned subsidiary for the smart electric vehicle business. The president of Xiaopeng Motors, He Xiaopeng also expressed his blessings on  its official account on Weibo.

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Currently, electrification, intelligence, and connectivity of traditional cars have become the consensus. Traditional automobile companies in the world and China have already started turning into smart electric vehicles.

At the same time, Tesla has become a popular product for global automakers, and domestic new car manufacturing forces such as Xiaopeng, Weilai, and Ideal Auto are also very popular.

Once believing that the transformation of the automobile industry was similar to the transformation of the convenience of smartphones. The automobile transformation period is similar to the 2010 smartphone transition period.

Xiaomi also announced that it would invest $ 10 billion in a subsidiary focused on the “smart electric vehicle business” within the next ten years. The company said in a stock market document that the new department would be headed by billionaire CEO Lei Jun and the initial investment would reach 10 billion yuan ($ 1.5 billion).