- On Tuesday, Xiaomi CEO Lei Jun said that the Chinese smartphone company plans to mass-produce its electric vehicles in the first half of 2024.
- Xiaomi’s Hong Kong stock jumped and over 5% on Tuesday.
- Xiaomi announced that it has entered into the electric car race in March, saying that it intends to invest $10 billion in the sector over the next ten years.
SHANGHAI, Oct 19 (Reuters) – China’s market is forecast to grow at a higher rate than the rest of the world. Per a company spokesperson, Xiaomi Corp (1810. HK), Chief Executive Lei Jun said that the Chinese smartphone firm will mass-produce its cars in the first half of 2024.
Local media first reported the comments made at an investor event, and the company later confirmed it.
Xiaomi’s international marketing director, Zang Ziyuan, also announced the story on his verified Weibo account.
The fledgling electric vehicle (EV) division, formally announced earlier this year, had set the date as the next major milestone.
Shares were up 5.4 percent to HK$22.50, the daily maximum percentage gain since May 12, extending gains for the third day in a row.
L4N2Q310P. Xiaomi announced in March that this would invest $10 billion over the next ten years in a new electric car division. In late August, the company completed the business registration of its EV unit.
The company has increased hiring for the unit, and it has yet to reveal whether it will produce the car alone or in cooperation with some other manufacturer.
Josh Horwitz and Yilei Sun contributed to this report, and Clarence Fernandez and Ana Nicolaci da Costa produced the article.
On Tuesday, GUANGZHOU, CHINA (Rbc) – CEO Lei Jun said that the company plans to mass-produce its electric vehicles in the first half of 2024.
The remarks were made at the company’s investor day and later confirmed by the CEO in a post on China’s Weibo, a Twitter-like service.
Xiaomi’s Hong Kong stock jumped and over 5% on Tuesday.
The company announced its entry into the electric car race in March, stating that it plans to invest $10 billion in the sector over the next ten years. Xiaomi officially registered its electric vehicle company, Xiaomi EV, Inc., last month.
Xiaomi EV now has 300 staff, according to the company’s announcement in September. Lei leads the team.
With the entry of new firms, China’s electric car market is highly crowded. In January, Baidu, the Chinese web search giant, launched its own electric car company and hired a CEO in February.
Xiaomi will fight against Chinese rivals such as Nio and Xpeng and larger automakers such as Elon Musk’s Tesla and BYD when it formally launches an electric vehicle.
Over the last few years, China’s electric vehicle sector has benefitted from good government support, which has aided the industry’s growth. While some of that support has waned, the market has been growing.
According to market research firm Canalys, 1.9 million electric vehicles will be sold in China in 2021, up 51% yearly.
Xiaomi Corp., China’s largest handset maker, would begin commercial production of its cars in the first half of 2024, as according CEO Lei Jun spoke at the company’s investor event on Tuesday.
Xiaomi announced in March that it would invest $10 billion in a new electric car division over the next ten years, giving it the latest tech company to leap into China’s growing Electric vehicle industry.
Noting that electric cars have shifted from the machinery to the information industries, Lei stated that Xiaomi’s participation in the automobile sector is not for profit “Take full advantage of the spotlight.
“If Xiaomi does not follow the trend, it will be faded out,” says another analyst, “Added he.
Is Xiaomi prepared to enter the NEV market?
In the last decade, China has surpassed the United States as the world’s largest electric vehicle market, bringing a rising amount of overseas and domestic companies to enter the market, including EV makers Tesla and NIO and smartphone makers Huawei Xiaomi. In the first nine months of 2021, data shows that EV sales exceeded 2.2 million, up 190 percent year on year.
According to McKinsey, yearly electric car sales in China would reach about 9 million units by 2030, representing a 24 percent annual growth rate.
He added that if Xiaomi does not follow the trend, the firm “would be eliminated.”
Article Proofread and Edited by Shreedatri Banerjee