Xiaomi registers subsidiary for production of electric vehicles

One of the world leaders in the production of smartphones, Xiaomi, has completed the registration of its subsidiary, which will be engaged in the production of electric vehicles, Report informs referring to the Business Insider.

Xiaomi has named the subsidiary Xiaomi EV, Inc.

Earlier this year, in March, Xiaomi announced its foray into the electric vehicle market. The electric vehicle business will be operated under a subsidiary company wholly owned by Xiaomi with an initial capital of RMB 10 billion. Xiaomi plans to invest around $10 billion over the next ten years in total for its electric vehicle business.

Lei Jun, who is currently the CEO of Xiaomi, will also head the company’s electric vehicle business.

Xiaomi hasn’t revealed when its first electric vehicle will launch, but the company has been making investments in this segment. Just last week, Xiaomi acquired Deepmotion, an autonomous driving technology company. Xiaomi announced the deal in its earnings call for the quarter ending on June 30, 2021.

The acquisition is aimed at pushing the company’s efforts to develop autonomous driving technologies. Xiaomi’s president Wang Xiang also said during the earnings call that the company currently has a team of 500 experts for its electric vehicle project, according to a report by Tech Node.

Xiaomi’s first electric vehicle will be either a sedan or an SUV, Lei Jun revealed earlier this year. The electric car will also cost between RMB 100,000 and RMB 300,000.