Xiaomi Announced That It Will Manufacture Electric Vehicles

Xiaomi announced that it will manufacture electric vehicles. The company will invest $ 15 billion in the car industry.

Following companies such as Apple, LG and Huawei, smartphone manufacturer Xiaomi also aims to invest in electric cars. Xiaomi plans to invest $ 15 billion in the electric car industry within three years. According to the Bloomberg News, smartphone maker Xiaomi is preparing to enter the electric car market. Search engine giant Baidu and Geely have previously announced that they will partner to produce electric cars. Electric vehicle sales have increased by more than 50 percent this year in China alone, while consumers are shifting towards electric cars due to cost and environmental concerns. According to the information in the news, Xiaomi will meet 60 percent of the planned investment and will provide financing for the rest. The Chinese company also wants to apply the production model it has implemented in smartphones to electric cars. At this point, Xiaomi is relying on companies that can make contract manufacturing, such as Foxconn. The report also stated that the company does not plan to establish partnerships with old car manufacturers. The announcements of companies such as Apple, LG, Huawei and Foxconn in the past months that they will produce electric vehicles had an echo in the automotive industry. Well-established car manufacturers such as Toyota and Volkswagen stated that they are not worried about new ventures in the sector and stated that these will be welcomed in the industry.     This article has contributions of Bloomberg HT.