Xiaomi's $10B EV Aspirations Hit By Regulatory Brakes: Report

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  • Xiaomi Corp's XIACY $10 billion electric vehicle project in China struggled for regulatory clearance, Bloomberg reports.
  • The smartphone giant failed to cut a breakthrough despite months of conversations with the National Development and Reform Commission about the licensing.
  • Xiaomi's EV division has over 1,000 employees and looks to commercialize its first vehicle in 2024. 
  • Also Read: China's IT Ministry Hit With Corruption Probe Amid US's Attempts To Restrict China's Tech Dominance
  • Xiaomi acquired land in the southeastern suburbs of Beijing for an assembly plant and bought EV startups.
  • China's electric car market is already crowded, with big shots like Tesla Inc TSLANIO Inc NIO, and Warren Buffett-backed BYD Co, Ltd BYDDY
  • Baidu, Inc BIDU to Huawei Technologies Co also weighed opportunities in autonomous driving, smart cockpit, and power management technologies.
  • Xiaomi opted for new growth areas after clocking its first sales decline on record in the first quarter. 
  • China has cracked down upon the EV sector following a spate of high-profile bankruptcies. 
  • Tesla's China-made EV deliveries climbed 145% in June as BYD led the EV players.
  • China explored measures to spur demand, including extending a tax break for EVs, building more charging stations, and encouraging lower charging fees. 
  • Price Action: XIACY shares traded higher by 1.35% at $8.24 in the premarket on the last check Friday.
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