Xiaomi founds automobile plant in Beijing

Beijing: The Chinese electronics manufacturer Xiaomi is planning to build an automobile plant in Beijing with an annual capacity of three lakh vehicles.

The announcement was made at a contract-signing ceremony held on Saturday between the company and the Beijing Economic-Technological Development Area’s management committee.

According to the agreement, Xiaomi will set up a business center, a sales center and an R&D center for the automotive production base in the development area, reports the Xinhua news agency.

The automobile plant will be built in two construction phases with an annual production capacity of 150,000 vehicles each. The first car is expected to roll off the assembly line in 2024.

The company claims to have 300 employees and is managed by the founder and CEO of the Lei Jun group.

In March, the Beijing-headquartered company announced it would start an electric car business and invest $ 10 billion over the next decade.

Xiaomi said its electric vehicle team had “done massive user research” over the past five months. It also visited industry partners while “driving EV product definition and team building,” the report said.

The company has yet to unveil one car, it added.

Xiaomi recently announced that it has acquired Deepmotion autonomous driving company for around $ 77.37 million to “improve the technological competitiveness” of its electric vehicle business.

Known for its smartphones and other internet-connected hardware, Xiaomi is jumping into an incredibly crowded space in China among startups like Nio and Xpeng, as well as established players like Tesla and Warren Buffett, a Chinese automaker, the report.

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