Xiaomi is going to make electric cars

Chinese electronics manufacturer Xiaomi has announced that it will make electric cars. The manufacturer is investing 1.3 billion euros in a subsidiary to start developing the cars and wants to invest much more in the next ten years.

Xiaomi wants to make “smart electric vehicles” with a subsidiary company set up for that purpose, Xiaomi has informed investors. CEO Lei Jun will also serve as director of the new subsidiary. The name of the company is still unknown and further details have not been disclosed.

There have been rumors about the move in recent months; Xiaomi responded by claiming that it is following the car market with interest. The most recent rumor mentioned that Xiaomi would like to partner with the Chinese automaker Great Wall. Independently developing and manufacturing a car costs a lot of time and money. Apple, among others, would therefore also be looking for a car manufacturer that can actually produce the cars. Sony and Huawei are also said to be interested in the electric car market. Sony has already shown a prototype and Huawei is said to be considering car development.

Xiaomi is best known for smartphones and fitness trackers, but also produces electric scooters, among other things. The rumor mentioned that the first car should be released in two years, but Xiaomi itself does not say anything about that in the statement. Xiaomi will initially invest around 1.3 billion euros in the project, which would become a total of 8.5 billion euros over the next ten years.