Another tech company is apparently set to join the smart mobility race. Electronics giant Xiaomi is reportedly looking to enter the automotive arena with its own range of electric vehicle (EV), with the first EV set to debut sometime in 2023, according to a Reuters report.
The project will involve a collaboration with Chinese automaker Great Wall, which will provide expertise as well as assembly operations at one of its plants, sources familiar with the matter told the news agency. Both companies plan to announce the partnership as soon as early next week, one of the sources said.
The sources added that the EVs will be badged under the Xiaomi brand and will be aimed at the mass market, in line with the broader positioning of its electronics products. They will also be able to connect with other devices in the company’s product eco-system. Great Wall, which has previously never offered manufacturing services to other companies but recently stated it was planning for its own electric car brand, will provide engineering consultancy to speed up the project.
The move comes as Xiaomi looks to diversify its revenue streams from the smartphone business, which accounts for the bulk of its income, but carries razor-thin profit margins. It is also a response to other tech firms working together with automakers to to develop smarter vehicles with technology such as smart cabins and autonomous driving.
In January, Chinese Internet company Baidu officially announced plans to make EVs using an auto plant owned by Geely, which would provide design consultancy and contract manufacturing for the collaboration. As for this report, Xiaomi declined to comment on the matter, and Great Wall said it had not discussed such a partnership with Xiaomi.
The post Xiaomi to build its own EVs, working with Great Wall appeared first on Paul Tan's Automotive News.
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