Xiaomi buys autonomous driving start-up, trying to diversify its business

Chinese electronics giant Xiaomi has acquired an autonomous driving start-up, jumping into a highly competitive area, while trying to diversify its business beyond smartphones, Report informs via CNBC.

Xiaomi said it had acquired Deepmotion for around $77.37 million to “enhance the technological competitiveness” of its electric vehicle business.

In March, Xiaomi announced plans to launch an electric vehicle business and invest $10 billion over the next 10 years.

The acquisition could help bring autonomous driving features to the cars Xiaomi eventually produces, a feature being developed by many automakers for next-generation electric vehicles.

Xiaomi’s electric and autonomous vehicle ambitions will pit it against China’s other technology giants in what is becoming an increasingly crowded space.

The company announced the Deepmotion acquisition after reporting financial results for the second quarter which saw revenue surge 64% year-on-year to 87.8 billion yuan ($13.5 billion). Xiaomi said total revenue and adjusted net profit hit record highs in the quarter.

Smartphones accounted for 67.3% of total revenue but the company has looked to reduce its reliance on mobile phones by pushing into other internet-connected devices. The company hopes electric vehicles can be a new revenue stream.