2023-08-26 14:00:00
Tech giant, Xiaomi, has stepped forward to begin mass production of its electric cars next year. The company has been given the green light by the Chinese government and plans to produce 100,000 EVs per year, according to Archyde.com.
Xiaomi aims to enter the Chinese auto industry at a time when the world’s biggest auto market is facing a series of problems. In particular overcapacity and slowing demand, which have fueled price wars in the recent past. Moreover, when the company starts producing electric cars, Xiaomi will be the last to enter the segment where several tech giants around the world have tried to become electric vehicle manufacturers.
Xiaomi receives NDRC approval
According to Archyde.com sources, China’s state planner (NDRC) has granted Xiaomi theauthorization to produce electric cars at the beginning of the month. The company is only the fourth since the end of 2017 to receive this approval.
Incidentally, it marks a milestone in the smartphone giant’s goal to start manufacturing cars early next year. Nevertheless, the company must obtain approval from the Ministry of Industry and Information (MIIT) before starting production of electric vehicles. In fact, the MIIT has the mission ofevaluate the technical and security aspects new vehicles.
Xiaomi’s entry into the electric vehicle market comes as the company faces challenges in its traditional smartphone manufacturing business. First quarter revenue was down 18.9% year-on-year. As a result, the company seeks to diversify its portfolio. Despite this, the company is determined to succeed.
Launch planned for early 2024
Regarding Xiaomi’s ambition to manufacture cars, the company has pledged to invest $10 billion over a decade in the automotive sector. The technology company, which intends to enter the electric vehicle market, has set itself the goal of mass-producing its first cars in the first half of 2024.
Xiaomi presented its first electric car, known as the Modena and bearing the name of code MS11. This electric sedan is expected to be priced more affordably than the Tesla Model S. Xiaomi’s entry into China’s auto manufacturing sector coincides with challenges facing the world’s largest auto market.
Xiaomi’s venture into the electric car industry represents a dimportant and daring step. Xiaomi is a leading player in the world of technology. Thus, its foray into electric vehicle manufacturing aligns with the trend of tech giants exploring new avenues beyond their traditional domains. For example, global tech giants like Apple and Sony have already expressed interest in manufacturing cars. Sony went further by presenting a prototype of its electric car, which it developed in association with Honda.
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