Bloomberg previously reported that Xiaomi is negotiating with BAIC Group to produce electric vehicles on its behalf, due to a delay in obtaining the license for independent manufacturing. However, according to a report by Sina Tech on September 1, two sources have revealed that Xiaomi Auto will very likely not buy BAIC’s factory and has no intention of adopting an OEM production mode, but will instead build its own factory.
The Chinese tech giant announced in November 2021 that Xiaomi Auto’s headquarters will be settled in the Beijing Economic-Technological Development Area, and a complete vehicle factory with a cumulative annual output of 300,000 vehicles will be built in two phases.
In addition, Xiaomi‘s engineering vehicle has been completed, and its software integration can be completed around mid-October, then various tests will start.
Sources also revealed that Yu Liguo fills one of the important roles in the decision-making team of Xiaomi Auto. He joined Xiaomi in the second half of 2021, and since January 2022, he has served as the vice president of Xiaomi Auto and the political commissar of Xiaomi Auto’s Beijing headquarters, responsible for comprehensive management, special business organizing and talent construction.
Before joining Xiaomi, Yu served as the executive deputy general manager of BAIC Group and the president of Arcfox Division within BAIC Group. Xiaomi‘s founder, Lei Jun, has gone to a brand store of Arcfox in Beijing for a test drive. At that time, there were rumors that Lei Jun wanted to buy an automobile factory of other automakers. This rumor lasted until October 2021, and the acquisition targets included Beijing Hyundai’s No. 2 factory and Borgward’s factory.