Apple made headlines recently after Hyundai revealed the company’s plans to build an electric car. Now, other speculations point out that Xiaomi is also interested in entering the vehicle market.
Chinese website iFengNews spoke to sources close to Xiaomi and found that the smartphone maker plans to launch a car in the future. So far, however, not even the company knows how it will try to enter this market.
According to the sources, Xiaomi’s car design is led by Lei Jun, the company’s CEO and main name behind the brand’s smartphone business. As the idea is still in the early stages of development, there are no detailed details about the project and, as expected, the Chinese manufacturer did not comment on the matter.
Although information about a Xiaomi car appears now, the company has already hinted that it has been interested in this market for years. The company even launched a customized vehicle from the Chinese automaker FAW in 2019, with optimizations for its smartphones.
The new project, however, should be further developed, involving the manufacture of parts and assembly of the vehicle. If Xiaomi follows the trends in the car industry, the company’s car should also be electric and have autonomous functions.
In 2013, Xiaomi’s CEO went to the United States twice to talk to Elon Musk about the electric car market. With that in mind, the Chinese firm may even use Tesla as a model for its car venture.
Why make a car?
The interest of smartphone makers in cars is due to stagnation in the cell phone sector. Smartphone sales have dropped considerably in recent years, including during 2020.
According to CNBC estimates, the car market is valued at $ 10 trillion globally. With this, Apple, the most profitable company in the mobile world, would need a slice of just 2% in the segment to be able to beat its current earnings in the mobile sector.