It looks like it won't just be Apple that will be getting into the electric vehicle (EV) market. Officially announcing its intention to make EVs is tech giant Xiaomi. You read right, the brand famous for making smartphones, laptops and other consumer electronics will also be selling electric cars in the not-so-distant future.
Xiaomi plans to enter the EV market by investing $10 billion over the next year, with an initial investment of $1.5 billion.
Once Xiaomi's EV is officially launched, the company plans to sell it to the mass market. With Xiaomi itself selling smartphones and other electronic devices at affordable prices, having a mass-market EV would make sense in their portfolio.
But why did Xiaomi decide to have its own electric vehicle? Apparently, the company is looking to diversify its revenue by offering products beyond consumer electronics. Its smartphone business may account for the bulk of its income, but it has thin profit margins. With an EV, it could help Xiaomi make bigger profits in the long run.
Another reason why Xiaomi wants to make an EV is to introduce its in-house technologies to the car market. With it, the tech company can showcase its systems which can also be used in a vehicle's onboard infotainment system, as well as more high-tech applications like intelligent safety systems or autonomous driving. More importantly, it will allow Xiaomi to broaden its internet-connected devices.
With Xiaomi planning to have an EV available in the next few years could send a message to the other tech companies. From just offering car-themed remote control cars like the Suzuki Jimny, as well as a Lamborghini-inspired electric go-kart, Xiaomi may soon become synonymous with zero-emissions vehicles.
But how will Xiaomi actually make and sell the EVs? According to a report by Reuters, the tech company will collaborate with Great Wall Motors and use one of its factories to build the said EVs. Apart from that, Great Wall will apparently provide Xiaomi with technical expertise, as well as engineering consultancy to make the EV a reality.