Xiaomi CEO Lei Jun holds a press conference on Xiaomi’s new logo and Xiaomi’s car construction on March 30, 2021 in Beijing, China.
VCG | China Visual Group | Getty Images
GUANGZHOU, China – Chinese smartphone giant Xiaomi has officially registered its electric vehicle business and said the division has entered a “phase of substantial growth,” the company said.
Name of the subsidiary Xiaomi EV, Inc. and was established with a previously declared registered capital of 10 billion yuan ($ 1.55 billion).
In March, the Beijing-based company announced plans to start an electric car business and invest $ 10 billion over the next decade.
Xiaomi EV now has 300 employees, the company said, and the business is headed by group founder and CEO Lei Jun.
Xiaomi said its electric vehicle team has conducted “a tremendous amount of user research” over the past five months. He also visited industry partners “advancing in the definition of EV products and the formation of teams”.
The company has yet to unveil a car.
Earlier this month, Xiaomi announced that it had acquired autonomous driving company DeepMotion for around $ 77.37 million to “improve the technological competitiveness” of its electric vehicle business.
Xiaomi, known for its smartphones and other internet-connected hardware, has won an incredible number of start-ups like Nio and Xpeng in China, as well as established players like Tesla and BYD backed by Warren Buffett, a Chinese automaker. Jump from a crowded place.
Xiaomi shares rose around 1.4% in Hong Kong afternoon trading, outperforming the larger Hang Seng index.