Chinese phone maker Xiaomi to setup its first electric vehicle factory in Beijing, first car to launch in 2024

In March 2021, Xiaomi said it would commit to investing $10 billion in a new electric car division over 10 years and completed the business registration of its EV unit in late August.

Image for representation (Reuters)

Chinese smartphone giant Xiaomi Corp will build a plant that can produce 300,000 vehicles annually in Beijing for its electric vehicle unit, authorities in the capital said recently. The plant will be constructed in two phases and Xiaomi will also build its auto unit's headquarters, sales and research offices in the Beijing Economic and Technological Development Zone, the government-backed economic development agency Beijing E-Town said on its official WeChat account.

Beijing E-Town said it anticipated the plant reaching mass production in 2024, a goal announced by Xiaomi's Chief Executive Lei Jun in October. In March, Xiaomi said it would commit to investing $10 billion in a new electric car division over 10 years. The company completed the business registration of its EV unit in late August.

The company has been opening thousands of stores to spur domestic sales growth for its smartphone business, but eventually intends to use these shops as a channel for its plans to sell electric vehicles. Xiaomi said its electric vehicle team has "conducted a massive amount of user research" in the last five months. It has also visited industry partners while "pressing ahead with the EV product definition and team formation," the report said.

The automobile factory will be constructed in two phases, with each having an annual production capacity of 150,000 vehicles. The first car is expected to roll off the production line in 2024. The business has yet to unveil a car, it added. Recently, Xiaomi announced it had acquired autonomous driving firm Deepmotion for around $77.37 million to "enhance the technological competitiveness" of its electric vehicle business.

Xiaomi, known for its smartphones and other internet-connected hardware, is jumping into an incredibly crowded space in China among start-ups like Nio and Xpeng as well as established players, including Tesla and Warren Buffett-backed BYD, a Chinese automaker, as per the report.

With input from wires