Xiaomi sets ambitious goals in the electric vehicle sector

The Chinese tech giant Xiaomi holds quite serious objectives regarding electric vehicle production. But what are the chances of success for the Chinese company?

Despite the challenges in the sprawling automobile market, Xiaomi is making a determined entry into China's car manufacturing sector. This move will see them vying for a position against seasoned manufacturers. Other tech behemoths, such as Apple and Sony, have also shown interest in the industry, with Sony even showcasing an electric car prototype crafted in partnership with Honda.

Xiaomi's strategic development timeline for their car factory has been well planned. Reports from First Financial Daily indicate that the construction of the car factory is divided into two pivotal phases. Phase 1, covering 720,000 square meters, kicked off in April 2022 with a completion target by June 2023. Phase 2 is slated for the 2024-2025 timeline. Upon completion, the establishment will house four buildings and an up-to-date testing facility, eyeing an annual output of 150,000 vehicles. It's also worth noting that by June 12, the factory had already passed its inspection. Moreover, the Xiaomi car prototype has been observed on test drives in various weather conditions.

Xiaomi sets ambitious goals in the electric vehicle sector

The location of the Xiaomi car factory is in Beijing’s Yizhuang district, a region yet to be fully developed. It is surrounded by an office park, Beijing Fangxindian, and vacant land to the south. At present, the surroundings are relatively peaceful, with minimal employee movement and muted construction sounds. The factory extends from Tongyi Road to Huanjing West First Road and between Jingsheng South Fourth Street and Yitong Street.

Lei Jun, Xiaomi's CEO, has expressed confidence that their cars will roll off the production line by early 2024. This is in line with their ambition of being recognized among the globe's top five car producers. The company’s financial report for Q2 2023 showcases a promising trajectory. Their quarterly revenue stood at 67.4 billion yuan ($9.4 billion), marking a 13% rise compared to the last quarter. The adjusted net profit also witnessed a notable year-on-year surge of 147%, totaling 5.1 billion yuan ($714 million), exceeding market anticipations. Their investments, especially in sectors like electric vehicles, have grown, amounting to 1.4 billion yuan ($196 million). The company has set a target to launch 100,000 EVs in 2024.

Lu Weibing, the President of Xiaomi Group, emphasized the company's unwavering commitment to the automotive realm. Xiaomi has clear intentions to intensify their investments for rigorous research and development. Their goal is clear: to secure a position among the world's top-tier car manufacturers and to ensure they establish their proprietary car production facilities.