Lei Jun, Founder and CEO of consumer electronics and smart manufacturing company Xiaomi, announced at the company’s annual Investor Day on Tuesday that the progress of the firm’s car-building efforts has far exceeded his expectations. He added the prediction that Xiaomi Auto will be officially mass-produced in the first half of 2024.
Lei also affirmed that entering the automobile business is not to “show off.” He believes that the electric vehicle (EV) industry has shifted from the machinery industry to the information industry, pointing out that many of Xiaomi’s peers are already doing it. He thinks that Xiaomi would lag behind if it doesn’t join the trend. In addition, the company has a fully intelligent ecosystem, from smartphones to smart home appliances and smart office items. If these products are well integrated with EVs, Xiaomi’s business layout would be greatly expanded.
Lei Jun revealed that Xiaomi Auto was registered in Beijing on September 1, and its first factory would be located in Yizhuang, Daxing District of Beijing. At present, the company has received 20,000 resumes and oversees 453 R&D personnel on duty.
In addition, a blogger named ‘@DigitalChattingStation’ revealed today that in August of this year, Xiaomi’s new energy team also contacted Faurecia, a French auto parts supplier, and it is expected that Xiaomi’s automaking progress will accelerate again.
Perhaps affected by Lei Jun’s announcement, Xiaomi’s stock price first increased 4.22% to HK$22.25 ($2.86), and then continued to rise. As of noon, it closed up 4.68% to HK$22.35 per share, with a total market value of HK$560.9 billion ($72.12 billion), an increase of HK$25 billion compared with the close of trading on the previous day.
On March 30 this year, Xiaomi announced that it would set up a wholly-owned subsidiary to develop a high-quality intelligent EV business. Xiaomi’s initial investment in its car-building business is 10 billion yuan ($1.56 billion), and it is expected that the investment in the next 10 years will be $10 billion. In addition, Lei Jun will be the CEO of the firm’s smart EV business.
Public information shows that Xiaomi Auto has been registered with capital of 10 billion yuan. Its business scope includes the manufacturing of new energy vehicles, the technical R&D of vehicles and parts, R&D of motors and their control systems and the manufacturing of auto parts and accessories.