The latest tech company to venture into the area of manufacturing electric vehicles is China’s Xiaomi Corp plans which plans to use the factories of Chinese auto maker Great Wall Motor Co Ltd’s factory, said a report published by the news agency Reuters.
Following the publication of the news, the stocks of Xiaomi went up 9 per cent while there was a 15 per cent spike in the stocks of Great Wall at Hong Kong stock and a 1- per cent surge in its stocks at Shanghai.
According to the report, one of the biggest smartphone makers of the world Xiaomi plans to launch the EVs for the mass market just like how it positions its electronic products in the market.
Engineering consultancy support to speed up Xiaomi’s EV project will be provided by Great Wall which has never before offered its manufacturing services to other companies, said the report quoting information from sources with direct knowledge of the matter. It was reported that both the companies plan to announce their partnership sometime next week.
There were no comments on the news available from Xiaomi and Great Wall.
For some time now, Xiaomi has been trying to diversify its sources of revenue – which now primarily is generated by its smartphone business – accounting for its majority of revenues and income but comes at very thin profit margins. The smartphone maker issued a warning of increase in costs because of the global chip shortage while also missing quarterly revenue estimates.
In the global auto industry, there have been a number of partnerships between tech companies and auto makers for developing technologies and capacities for smart vehicles and for smart technologies such as smart cabins and autonomous driving.
In January this year, the Chinese search engine provider Baidu Inc announced its plans of venturing into the EV industry with the help of industry an auto plant owned by Geely – an auto company that has set a target of offering its engineering consultancy and contract manufacturing services to other companies in the auto sector. Reports about the ambitions to move into the auto sphere have also been reported for Apple Inc and Huawei Technologies Co Ltd.
Xiaomi will be able to move at fast pace with respect to the designing and production of its EVs because of the firm’s experience and expertise in hardware manufacturing, Xiaomi’s founder and chief executive, Lei Jun, is reported to have said, according to the Reuters report.
“Xiaomi wants to find a mature automobile manufacturer to provide model infrastructure, enabling its own advantages in mobile internet technology,” said Alan Kang, senior analyst at LMC Automotive.
“Xiaomi’s advantages in operating systems and home furnishing also bring a lot of imagination for such cooperation in the future.”
Dozens of internet-connected devices including scooters, air purifiers and rice cookers along with smartphones are also manufactured by Xiaomi.
The report claimed that its first EB is planned to be launched by Xiaomi by 2023 and the vehicles will be able to connect with other devices in its product eco-system.
(Adapted from Reuters.com)