The founder of Chinese electronics giant Xiaomi, Lei Jun, has recently visited the headquarters of automaker FAW Group in northeast China’s Jilin Province for in-depth talks on a vehicle-making partnership, according to a Saturday report released on the provincial government’s website.
Affected by the news, the share price of FAW Jiefang, a subsidiary of FAW Group, soared by 10% to reach 12.78 yuan ($1.98) per share today.
China FAW Group Co., Ltd., formerly known as “The First Automobile Factory of China,” was established in 1953 and oversees seven business segments, including Hongqi, Jiefang, Bestune, joint ventures and cooperation, emerging business, overseas business and ecological business.
According to enterprise information platform Qichacha, on September 9, FAW New Energy Automobile Sales Co., Ltd., 100% controlled by FAW, was established with a registered capital of 200 million yuan. The firm’s business scope includes sales of new energy vehicles, battery swap facilities and accessories.
On his visit to Jilin, Lei Jun also met with the province’s top government officials, including Jing Junhai, secretary of the Jilin Provincial Committee of the Communist Party of China. Jing said: “Xiaomi has strong R&D and production capacity in the fields of consumer electronics and intelligent manufacturing. Jilin has a good industrial foundation, strong scientific research strength and sufficient talent reserve. Therefore, the cooperation between the two sides in the fields of automobile manufacturing has broad prospects. I hope Xiaomi can strengthen cooperation with FAW as well as Jilin’s auto industry chain.”
Lei said the company will take the initiative to strengthen cooperation with Jilin automotive enterprises to better solidify the foundation of automotive production and strive to create high-quality automotive products.
Lei Jun has frequently visited car companies and supply chain enterprises since Xiaomi‘s official announcement that it intended to start building cars. The entrepreneur said that in the past five months, Xiaomi’s auto team has conducted more 2000 interviews and communicated with over 10 partners.
According to media reports, Xiaomi Auto will release a new car each year for the next three years after the initial model is launched in 2024, and expects to sell 900,000 vehicles in the three years that follow. According to Sinolink Securities statistics, Xiaomi currently invests in 56 enterprises across the field of smart cars, including 17 enterprises in the arena of intelligent driving, six enterprises in intelligent EVs and seven enterprises in intelligent cockpits.