Xiaomi confirmed the rumors that it will enter the electric car market with its statement. The company will invest $ 1.5 billion in the first place for this. The Chinese manufacturer then plans to spend another $ 10 billion on electric cars over a 10-year period.
In the statement sent to investors from Xiaomi regarding the issue, it was stated that a separate subsidiary will be established for the electric car operation. The company did not provide information on in which countries it will sell its electric cars.
Before Xiaomi, Chinese technology companies such as Huawei and Baidu also announced their plans for the electric car market. Local brands such as Nio and Xpeng are already prominent in the Chinese electric car market. Tesla also wants to have a say in this market. According to the report prepared by Canalys, electric car sales in China will increase by at least 50 percent in 2021.
According to the news of Bloomberg; Xiaomi, who has been evaluating the idea of producing electric cars for months, has just made its decision. The company is expected to outsource the production of electric cars to third parties, just like smartphones.