On Wednesday, November 8th, Xiaomi held a closed-door meeting attended by representatives from companies in the Xiaomi smartphone and automotive-related industries. It was an invitation-only event, and attendees are not allowed to bring mobile phones, computers or other electronic devices.
The car manufacturing venture has emerged as a pivotal investment endeavor for the senior leadership of Xiaomi Group. The company’s founder, Lei Jun, has openly shared insights into his allocation of time since the announcement of Xiaomi‘s automotive ambitions in 2021—half towards the car project, a quarter to the smartphone division, and the remaining quarter to miscellaneous corporate responsibilities.
In a noteworthy development, William Lu, the President of Xiaomi Group, made a declaration at the Qualcomm Snapdragon Summit in Hawaii on October 24th, setting the stage for the official launch of Xiaomi Cars within the next calendar year. This announcement has stirred considerable anticipation in the automotive industry.
Delving into the operational status of the venture, it was earlier reported that Xiaomi‘s car factory in Beijing has been buzzing with heightened activity of late, indicating a ramp-up in production efforts. This sustained operation signals Xiaomi‘s deepening commitment to carving out a significant presence in the car manufacturing landscape.
The external focus on the success of Xiaomi‘s automotive venture mainly centers on issues such as licensing qualifications, factory construction, mass production capabilities, and pricing ranges.
Xiaomi Corporation has received approval from relevant Chinese authorities to begin the production of electric vehicles. Xiaomi officials have not yet responded to this news. According to sources within Xiaomi, the industrial chain for Xiaomi smartphones will directly serve the Xiaomi car project. Additionally, in terms of factory construction, the Xiaomi automotive plant is planned to be built in two phases: the first phase covers an area of nearly 720,000 square meters, with construction starting in April 2022 and completion expected by June 2023; the second phase is scheduled to commence in 2024 and be completed by 2025.
Lei Jun has stated publicly that Xiaomi cars are expected to officially enter mass production in the first half of 2024. The existing supply chain system of Xiaomi smartphones is one of the advantages Xiaomi has as it enters the car manufacturing industry at this time. An investor with a focus on the EV sector revealed to Chinese media Jiemian that Xiaomi‘s advantage in car manufacturing, compared to others, lies in Xiaomi‘s robust sales channels. Secondly, supply chain resources are also one of Xiaomi‘s strengths.