Xiaomi Aiming to Manufacture an Electric Car

The success of Tesla and its commitment to the electric car and its entire ecosystem have inspired many of the technology giants to try to diversify their activity towards automobiles. We have Apple’s case, which hasn’t announced who will make it, and now we can also add Xiaomi to the list.

According to Chinese media, various sources have stated that the tech giant is planning to build an electric car and is considering it a strategic decision that will go beyond announcements such as Huawei’s, focusing on developing components for other brands.

There are not many details, but the sources consulted also affirmed that although there is nothing signed, the project will be directed by the founder and executive director of Xiaomi, Lei Jun, which gives more credibility and possibilities to the initiative.

Lei Jun himself has come to meet personally with Elon Musk at least twice in 2013. Meetings that have not transcended at the time could be the seed that has now caught the interest of the Asian technology giant. Like many other companies in the sector, it faces stagnation in sales after explosive growth. It collides with the electric car’s opposite dynamics that will maintain its upward trend in the coming decades.

Therefore, it would not be a total surprise if the company aims to expand its presence in a market with room for more competition, and decide to make the most of its vast R&D team to expand horizons towards the electric car. Also, having a powerful vehicle manufacturing industry at hand with more and more experience with electric models. A winning combination, without a doubt.

At the moment, there are no details of how the project will proceed. Unless Xiaomi starts a brand from scratch, it will acquire one already in operation. In the case of NIO or Xpeng, Xiaomi itself has minority investments that would mean an outlay right now unaffordable due to the high price that the two brands’ titles have reached. Something that, together with the ease of collection of both, makes this impossible.

An example of the difficulties that Xiaomi will have to face if they want to get on a train that runs at full speed, and where each day that passes, they will have to invest more money if they wants to get on the head wagons, but that will allow them to apply one of the company maxims such as diversification, which has led it to manufacture almost everything that can be manufactured beyond telephones.

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