Foreign Media: "Xiaomi Enters Electric Vehicle Market... Negotiating with Car Companies"

Using Changcheong Automobile Factory... Also Providing Technical Consultation

[Asia Economy Reporter Cha Min-young] Global electronics manufacturer Xiaomi is reported by foreign media to be entering electric vehicle production using the Changcheng Automobile factory.

According to foreign media reports on the 26th, three sources said that Xiaomi is negotiating to produce its own brand cars at one of the Changcheng Automobile factories in China.

Another source said that Xiaomi plans to launch its first electric vehicle around 2023, and the negotiation between the two companies could be announced as early as the beginning of next week.

Changcheng Automobile is also reportedly planning to provide technical consulting that it has not offered to other companies. This is expected to help Xiaomi accelerate electric vehicle production.

However, Xiaomi and Changcheng Automobile are denying official responses regarding this partnership agreement.

Xiaomi is an electronics company focusing on smartphone manufacturing and has recently been seeking business diversification. In particular, the global chip shortage has increased cost burdens. Quarterly sales also fell short of market expectations.

The fact that global big tech companies are rushing into the electric vehicle market is also interpreted as influencing Xiaomi's decision. Chinese search engine company Baidu announced in January that it plans to produce electric vehicles using a Geely-owned automobile factory. Apple and Huawei have also formalized plans to enter the automobile market.

There is also analysis that Xiaomi founder and CEO Lei Jun believes that hardware manufacturing technology will help accelerate electric vehicle design and production. Xiaomi produces various electronic products including its main product smartphones, scooters, air purifiers, and rice cookers.

This content was produced with the assistance of AI translation services.