Chinese multinational electronics company, Xiaomi will build an auto unit in Beijing that is expected to have an annual production capacity of 300,000 vehicles, according to reports.
China’s largest smartphone maker signed a contract with Beijing Economic and Technological Development Zone, Beijing E-Town, the government-backed economic development agency, stated.
As part of the agreement, the plant will be constructed in two phases, each having a capacity of 150,000 cars, and Xiaomi will build its auto unit’s headquarters, sales and research offices in the Zone.
The company is expected to start mass production of electric vehicles (EV) in the first half of 2024, as per the goal announced by Xiaomi’s Chief Executive Mr. Lei Jun in October. Further, the company is anticipated to launch electric cars, electric scooters and electric motorcycles by 2024, to serve the growing demand in the Chinese and Indian markets.
Earlier this year, Xiaomi pledged to invest $10 billion in a new EV division over 10 years, joining a market that’s already crowded with international and local players including Tesla, Nio and Xpeng. The company completed the business registration of its EV unit in late August.
Till now, Xiaomi has been a disruptor in the smartphone business bringing cost-effective smartphones. The Chinese firm also manufactures Smart TVs, wearables, earphones, and other IoT products. The company also has Redmi and POCO sub-brands to sell smartphones.
The Chinese company has been opening thousands of stores to spur domestic sales growth for its smartphone business but eventually intends to use these shops as a channel for its plans to sell EVs.