Xiaomi in talks with major automakers for potential EV partnerships
Chinese technology giant Xiaomi (OTC:XIACF) Corp. is reportedly in talks with leading automakers Brilliance Auto Group Holdings Co., Chery Automobile Co., and Beijing Automotive Group Co. for potential partnerships in electric vehicle (EV) production. The move comes as the company, which hopes to manufacture its own brand of EVs, awaits license approval from China’s Ministry of Industry and Information Technology.
China has been tightening control over EV production licenses, causing a once rapidly growing market, previously fueled by generous subsidies, to now level off. This has prompted companies like Xiaomi to explore collaborations with licensed manufacturers. However, it remains uncertain whether these partnerships will come to fruition.
Despite the uncertainty surrounding these potential partnerships, Xiaomi’s co-founder Lei Jun plans to invest $10 billion into the EV initiative, aiming for a 2023 launch. This ambitious plan comes even as Xiaomi experiences a 4% drop in revenue. Nevertheless, the company’s Q2 net income surpassed expectations, reaching 3.67 billion yuan ($503 million) due to cost-cutting efforts.
