Xiaomi to build car plant that can produce 300,000 vehicles annually    

Following reports of Chinese electronics juggernaut Xiaomi venturing into the electric vehicle (EV) space, the company is finalizing plans to build a manufacturing facility in Beijing.

Xiaomi CEO Lei Jun (front, center) is surrounded by members of the core team tasked to develop the company's EVs 

A report by Reuters quotes authorities in China’s capital as saying that the facility will also serve as headquarters to Xiaomi’s automotive unit, as well as sales and research offices. These will be located within the Beijing Economic and Technological Development Zone, according to state-backed economic development agency Beijing E-Town on its official WeChat account.

The project will be undertaken in two phases. Once completed, the manufacturing plant is expected to achieve mass production by 2024, with the goal of churning out 300,000 vehicles on a yearly basis. This is consistent with Xiaomi CEO Lei Jun’s announcement in October.

Xiaomi famously built its reputation on a counterintuitive business model, relying on internet marketing instead of brick-and-mortar stores to drive sales, becoming successful because of it. However, it is now embarking on an aggressive expansion of its physical store network across mainland China. This will not only boost smartphone sales, but also serve as outlets for the company's planned EV units.

The plant is expected to roll out 300,000 vehicles per year at full production capacity 

News of the planned facility in Beijing comes seven months after the company’s announcement in March that it is investing $10 billion (Php 505.7 billion) in a new electric car division over the course of 10 years. Xiaomi recently completed the registration of its EV business in August 2021.            

The company joins other tech firms that have made the plunge into electric vehicles. Foremost of these is Apple Inc. which, despite encountering significant challenges in developing its Apple Car, is now reportedly on the way to unveiling the model in 2025.

Search engines Google and Baidu also launched their self-driving taxi offerings that use Waymo One and Apollo Go services, respectively. Xiaomi’s domestic rival brand Oppo also hinted that it will join the EV race with financial backing from parent company BBK Electronics.

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