Xiaomi To Enter Into The Electric Vehicles Segment
Chinese tech giant Xiaomi has unveiled its brand new dynamic logo which is based on the “Alive” design concept. With this, the brand has also announced to enter into the electric vehicles (EVs) vertical with plans to invest in a wholly-owned subsidiary with an initial investment of RMB 10 billion. This subsidiary will focus on the development of smart EVs. Lei Jun, the current CEO of the Xiaomi Group, will serve as the CEO of this subsidiary as well.
Commenting on the occasion, Lei Jun said –
The smart EV is the broadest race track in the next decade. It is an inseparable and crucial part that forms the smart ecosystem; It is an inevitable choice to expand the integrated ecosystem of AIoT smart living; It is also the only path for us to fulfill the vision of the company and to bring a better life to everyone through technology. By stepping into a new domain, we will certainly encounter many challenges. The automobile industry features great complexity, a huge amount of investment, a long product cycle, and low fault tolerance, which requires us to treat it with full respect and seriousness. Facing these challenges with a fearful heart as if we are walking on thin ice.
Initially, Xiaomi is likely to enter only the Chinese market where the EV segment is increasing rapidly. Also, Xiaomi already has expertise in making smartphone batteries and electronic modules, which will be certainly beneficial for the brand to develop a smart platform and long-range batteries for electric vehicles. Though it is not official, the brand could also collaborate with specialized auto brands to further accelerate the EV development process.
For the people not in know, Xiaomi isn't the only tech giant to enter the auto industry. Earlier, Apple has also announced its car project that is likely to come by 2024. Alphabet Inc, the parent company of Google, is also working on a self-driving EV, whereas Google is already into electric mobility solutions.
Tech giants stepping into the automotive world is a huge achievement for the industry as it will not only increase the competition but will also bring more advanced techs and push the industry more rapidly towards complete electrification.