China smartphone maker to enter the EV industry

Xiaomi is expected to aim its EVs again at the middle-class income groups to capture the mass market so it’s in line with the position of the company in smartphone production.

China smartphone maker to enter the EV industry

China smartphone giant Xiaomi is planning on entering the EV industry by starting its production by leveraging the Great Wall Motors factory. Xiaomi is known for manufacturing one of the most affordable smartphone brands in the world and presently, it is negotiating a deal to use one of the Great Wall’s plants in China to start production of EVs under its name. Xiaomi is expected to aim its EVs again at the middle-class income groups to capture the mass market so it’s in line with the position of the company in smartphone production.

 

Great Wall has never been provided for manufacturing services to other companies. However, according to the deal with Xiaomi, they are providing the brand with all engineering consultancy which can greatly impact the speed of the project. Both companies are planning to declare their partnership as early as the next week. In pursuit of this, the companies, Xiaomi and Great Wall have dodged any comments.

 

The plan has been thought of put in place to generate revenue streams from a diversified portfolio. The 8-year-old smartphone giant holds the chunk of its income, however, carry-forward profit margins are razor-thin. The company also mentioned the potential of rising costs owing to the global chip shortage and reported below market estimated quarterly revenue. The move also comes at a time where various automakers and tech firms are refraining from working together to build smart vehicles equipped with IoT technology.

 

Besides smartphones, the smartphone manufacturing company also has its presence in the internet-connected device market including scooters, air purifiers and rice cookers. The company is planning to launch its first electric vehicle by the year 2023. It enables its EV cars to get connected with other devices in the car eco-system and provide a greater customer experience.