Xiaomi, which announced in March it was developing electric vehicles, has completed the registration process for its subsidiaries. Xiaomi’s electric vehicle brand will be called “Xiaomi EV.”
As reported by CNBC, a U.S. business media, Xiaomi announced on the 1st (local time) that it has completed the brand registration of its subsidiaries and has entered a “significant development stage” for electric cars.
Xiaomi announced in March that it would invest $10 billion in electric vehicles over the next 10 years. Furthermore, the company announced earlier this month that it had acquired Deep Motion, a maker of self-driving cars, for $77.37 million to boost its technological competitiveness in the electric vehicle field.
Xiaomi announced that CEO Lei Jun will direct the electric vehicle business. Xiaomi EV has a registered capital of 10 billion yuan ($1.5 billion), is headquartered in Beijing, China, and has 300 employees.
In the past five months, Xiaomi’s electric vehicle division had “conducted a large-scale user survey” and contacted many industry partners as it rushed to define electric vehicle products and form a development team. The EV prototype has not been unveiled yet.
Xiaomi responded on their social media accounts that they are in contact with several automakers, but have yet to decide which company to work with.
Earlier in August, the Chinese giant also entered talks to purchase a stake in the automotive unit of Evergrande Group, as reported by Reuters.
China’s Xiaomi beat analyst expectations last week, with revenues and profits increasing by 64% and 87.4%, respectively. In the aftermath of U.S. government sanctions, Huawei Technologies Co Ltd has been forced to retreat from the global smartphone market, increasing its share to approximately 20%.
Xiaomi’s share price rose about 1.4% in Hong Kong’s index on the same day, outperforming the Hong Kong Hang Seng Index.