Chinese smartphone manufacturer Xiaomi has announced about the creation of a subsidiary enterprise for the production of electric vehicles. Over 10 years, the company plans to invest $10 billion.
The subsidiary will be 100% pertained to the IT giant, and will be headed by Xiaomi founder and CEO Lei Jun. At the first stage, it is planned to invest about 10 billion yuan (about $1.5 billion) in the new business, and within 10 years the total investment will amount to $10 billion. The company intends to offer high-quality smart electric vehicles, so that everyone in the world “can enjoy a smart life anytime and anywhere”.
Earlier, Reuters source informed that Xiaomi plans to produce electric cars at one of the factories of the Great Wall carmaker. They will be designed for the mass consumer and will be able to connect to other devices in the Xiaomi ecosystem. The first model of an electric car may appear as early as 2023.
Xiaomi – a Chinese company founded in 2010, is engaged in the production of smartphones, tablets, as well as “smart” home goods. Its IPO in July 2018 on the Hong Kong Stock Exchange became the largest in the technology industry after the initial public offering of Chinese Internet Giant Alibaba in 2014.