Xiaomi likely to setup its first electric vehicle plant in Beijing

Authorities in Beijing recently announced that Chinese smartphone giant Xiaomi Corp will develop a plant in the city that will be capable of producing 300,000 electric vehicles per year for its electric vehicle segment. According to the government-backed economic development agency Beijing E-official Town's WeChat account, the facility will be built in two parts, and Xiaomi will also build its vehicle unit's headquarters, sales, and research offices in the Beijing Economic and Technological Development Zone.

Xiaomi's Chief Executive Lei Jun declared in October that the facility would reach commercial production in 2024. Beijing E-Town said it expected the plant to begin mass production in 2024. Xiaomi announced in March that it would invest $10 billion over ten years in a new electric car segment. In late August, the corporation completed the business registration of its EV segment.

Thousands of stores have been opened to boost domestic sales growth for the company's smartphone business, but the corporation eventually aims to use these stores as a channel for its plans to sell electric automobiles. In the last five months, Xiaomi's electric car team has "conducted a massive amount of user research," according to the company. According to the report, it has also visited industry partners while "pressing ahead with the EV product definition and team formation."

The automobile plant will be built in two stages, each with a production capacity of 150,000 automobiles per year. In 2024, the first car is planned to roll off the assembly line. The company has yet to reveal a vehicle, according to the statement. Xiaomi just announced the acquisition of Deepmotion, an autonomous driving company, for $77.37 million to "improve the technological competitiveness" of its electric vehicle business.

According to the report, Xiaomi, which is known for its smartphones and other internet-connected technology, is entering a crowded market in China that includes start-ups like Nio and Xpeng as well as established competitors like Tesla and Warren Buffett-backed BYD, a Chinese automaker.