Xiaomi will enter the business of making cars: Report

Xiaomi has built quite a good reputation when it comes to developing reliable and quality products, especially in the global smartphone industry. Now, the Chinese multinational company is taking one step further to expand its business reach by entering the automotive industry.

In a report by GagdetMatch, Mr. Lei Jun, the CEO of Xiaomi Group, has finally confirmed the Chinese company’s plans to manufacture cars last March 30, 2021, after weeks of rumors. The board of directors of the Xiaomi Group will set up a wholly-owned subsidiary to operate its electric vehicle business.

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Xiaomi Group announced that its initial phase of investment will be RMB 10 billion (or around USD 1.5 billion), and the investment is estimated to be USD 10 billion in the next 10 years. Mr. Lei Jun himself will concurrently serve as the CEO for the Chinese company’s venture to make electric cars in the future.

Considering that some countries will soon pioneer a market that will completely withdraw from manufacturing internal combustion engine (ICE) cars, entering the business of making electric and smart cars seem to be the ideal move for Xiaomi Group. The Chinese multinational company hasn’t provided dates for the launching of its Mi Cars.

Xiaomi Group CEO Mr. Lei Jun with Elon Musk

The products of Xiaomi are well received by consumers saying they can compete at a high level against top companies such as Samsung. Plus, Xiaomi distributes its products at a more affordable price tag despite offering almost the same specs as its competitors.

With that being said, one can expect that the same reliability and quality will be reflected in Xiaomi’s future automobiles. Xiaomi will be joining American company giant Apple as renowned smartphone developers to enter the ever-growing car business.

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