Chinese tech giant Xiaomi is making a bold move into the electric vehicle (EV) industry, with substantial investment in its first model.
What Happened: Xiaomi’s CEO Lei Jun has announced high aspirations for the company’s first EV model, as per a CnEVPost report on Monday. The interview with state-run CCTV reveals that Xiaomi has poured over RMB 10 billion ($1.4 billion) into R&D for the EV, an investment that exceeds industry standards by a wide margin.
“I came into car building with an aim to win,” Lei Jun said.
He is banking on proven auto technologies and robust investment to secure Xiaomi’s place in the car market. While acknowledging the challenges that come with entering the automotive sector, Lei remains optimistic about the company’s ability to navigate these hurdles.
The Xiaomi SU7, launched in March 2021, is all set for its official launch after clearing the final major regulatory process. Mass production of the EV is slated for the first half of 2024.
The SU7, bigger than both Tesla Inc.’s TSLA Model 3 and Nio Inc.’s NIO ET5, boasts battery packs with capacities of 73.6 kWh and 101 kWh and is capable of running up to 800 kilometers on a single charge.
Why It Matters: Xiaomi’s foray into the EV market is not an impromptu move. Xiaomi had already announced its first EV model the SU7 Produced by Beijing Automotive Industry Holding Co. Ltd., a unit of BAIC Motor Corp BCCMY. The sedan was scheduled to start mass production in December 2023.
Image Credits – Xiaomi
Engineered by Benzinga Neuro, Edited by Pooja Rajkumari
The GPT-4-based Benzinga Neuro content generation system exploits the extensive Benzinga Ecosystem, including native data, APIs, and more to create comprehensive and timely stories for you. Learn more.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
