Xiaomi is exploring partnership options for the upcoming Modena EV
Chinese technology giant Xiaomi is reportedly exploring partnerships with existing carmakers to enter the electric vehicle (EV) market. A Bloomberg report suggests that the smartphone maker has approached automakers such as Brilliance Auto Group Holdings Co. and Chery Automobile Co. to discuss potential collaborations. The company aims to produce EVs under its own brand name, even though it hasn't received approval for manufacturing yet.
China's booming EV market inspired Xiaomi to create Modena EV
Xiaomi's interest in electric vehicles stems from China's status as the world's largest automobile and EV market. The Chinese government actively supports EV adoption, with plans to expand EVs into rural areas and reintroduce subsidies to boost demand and sales. Already a major player in the consumer electronics sector, Xiaomi sees the growing EV market as a chance to diversify its product lineup and capitalize on this booming industry.
Xiaomi's $10 billion investment plan for EV development
Xiaomi's co-founder Lei Jun has announced plans to invest around $10 billion in the development and manufacturing of electric vehicles. As the company's smartphone business continues to flourish, entering the mobility space could allow the company to broaden its reach and tap into new revenue streams. Partnering with an established carmaker could help speed up the process of bringing Xiaomi-branded EVs to market.
Challenges and competition in the Chinese EV market
Xiaomi's ambitions face some hurdles, including entering the highly competitive Chinese market. The company still awaits approval from China's Ministry of Industry and Information Technology to manufacture its own products. Additionally, the technology giant will face stiff competition from both local and global players in the EV space. Despite these challenges, experts agree that the rapidly growing market has room for new entrants, making it an attractive prospect for Xiaomi.
