Xiaomi Expands EV Production with $116 Million Beijing Site Acquisition
Xiaomi has paid $116 million for a 53-hectare property in Beijing to increase its EV production. The business hopes to reach its sales target of 100,000 vehicles by November 2024. Xiaomi wants to create a sport utility vehicle akin to Tesla's Model Y by 2025.
Xiaomi's subsidiary Xiaomi Jingxi Technology Ltd. purchased the 53-hectare (131-acre) site near the company's present EV manufacturing in Beijing's Yizhuang neighbourhood. The acquisition intends to boost the high-end automobile and new energy intelligent vehicle industries.
Xiaomi entered the auto industry in March with the debut of its cheapest model, the SU7, which costs 215,900 yuan. This move is part of CEO Lei Jun's ambitious US$10 billion ambition to develop a strong position in the electric vehicle market. Lei Jun stated that the firm has already delivered 30,000 vehicles and is on schedule to meet its initial sales target of 100,000 by November 2024.
Xiaomi's successful move into EVs comes at a time when several competitors are struggling to win market share in a competitive industry. In 2022, the Beijing government eliminated national subsidies for EV purchases, resulting in lower demand and financial difficulties for some EV producers, including WM Motor Technology Group and Human Horizons Shanghai Internet Technology Co. Ltd.'s luxury HiPhi brand.
In addition to smartphones, Xiaomi is now developing a sport utility vehicle akin to Tesla Inc.'s Model Y, with hopes to start manufacturing as early as 2025. The corporation is also preparing to build the second phase of its automotive manufacturing, which is expected to be completed in 2025 and expand annual production capacity to 150,000 vehicles.
Despite these momentous developments, Xiaomi has yet to comment on its recent land acquisition. Xiaomi gained an independent car manufacturing certification in July, eliminating the need to rely on the permit issued by state-owned BAIC Motor Corp.
Xiaomi purchases a 53-hectare site in Beijing for $116 million to expand EV production.
The company aims to achieve its sales goal of 100,000 vehicles by November 2024.
Xiaomi plans to introduce a sport utility vehicle similar to Tesla's Model Y by 2025.
Source: YAHOO