The Chinese smartphone giant Xiaomi Corp is expected to launch a smart electric vehicle business soon. Xiaomi will invest USD 10 billion in a new smart electric vehicle business division, as spotted in an announcement.
Xiaomi will initially invest CNY 10 billion in the wholly-owned subsidiary, with a total investment target of USD 10 billion over the next ten years. The announcement also reveals that Mr. Lei Jun, the Chief Executive Officer of the Group, will work as the Chief Executive Officer of the said smart electric vehicle business.
In an internal letter to employees, Lei Jun stated that Xiaomi has distinct and unique advantages in manufacturing cars:
1. Smart electric vehicles have fundamentally transformed the business model of the traditional automotive industry, and Xiaomi has the deepest understanding of the hardware-based internet service business model;
2. Xiaomi has the most extensive experience in software and hardware integration, and the most profound manufacturing know-how within the internet industry;
4. Xiaomi has a smart ecosystem which is the largest in terms of scale, the most diversified in terms of product category, and the most active in terms of user connections;
5. Xiaomi has numerous core technologies that can be applied to smart electric vehicle business;
5. Xiaomi has a powerful brand and strong user base, with trust and support from Mi Fans across the globe;
6. Xiaomi has abundant cash resources that allow Xiaomi to invest with confidence.
“Smart electric vehicles represent one of the largest business opportunities in the next decade and represent an indispensable component of smart living. Entering this business is a natural choice for us as we expand our smart AIoT ecosystem and fulfill our mission of letting everyone in the world enjoy a better life through innovative technology.” Lei Jun said.
Check out the statement below.
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