Smart device manufacturer Xiaomi Corp. plans to invest $10 billion over the next 10 years to develop its own line of smart electric vehicles (EVs).
Xiaomi made the decision to invest in EVs after rounds of deliberation among its partners and felt it was a right fit given the numerous core technologies Xiaomi manufactures that can be applied to EVs and the company understands hardware-based internet services.
Xiaomi also said it has a strong user base and abundant cash resources to invest in the technology without financial issues.
The Chinese company said EVs have fundamentally changed the automotive business, referring to how traditional automotive OEMs have all made plans to switch exclusively to EVs in the next 10 to 15 years or make EVs their primary model of cars during this time. This includes General Motors, which will phase out gas- and diesel-powered cars, Ford, Volvo, Volkswagen, Jaguar and Daimler.
“Smart electric vehicles represent one of the largest business opportunities in the next decade and represent an indispensable component of smart living,” said Lei Jun, founder, chairman and CEO of Xiaomi. “Entering this business is a natural choice for us as we expand our smart AIoT ecosystem and fulfill our mission of letting everyone in the world enjoy a better life through innovative technology.”
In addition to traditional automotive OEMs switching to EVs, a vast number of startups have surfaced to take advantage of this emerging market and capitalize on the popularity of Tesla Motors. And the Biden Administration recently said it would replace all 650,000 government vehicles with electric models and build an additional 550,000 EV charging stations.
