Xiaomi will mass produce its own electric cars in 2024

Following the radical changes in the car market, traditional car companies won’t make it, if they do not adjust to the up and coming changes. And what is even more interesting is the fact that the tech companies are craving a piece of that pie.

Tesla for example is considered to be a tech company rather than a traditional car manufacturing corporation. Google’s own Waymo is working on self driving cars for over a decade. Amazon invested heavily in Rivian and Zoox and Apple recruited a lot of electric vehicle engineers.

And now Xiaomi is the new kid on the block. According to Xiaomi CEO Lei Jun the Chinese smartphone company is expecting to mass produce its own electric cars in the first half of 2024. As a result of the statement given on Tuesday, Xiaomi’s shares in Hong Kong jumped over 5%.

This news comes as no surprise, given that in March, Xiaomi announced its entrance into the electric car race. Xiaomi CEO Lei Jun announced that the Chinese smartphone company will invest $10 billion into the electric car business over the next 10 years.

At the moment Xiaomi EV is the official business name of the newly registered entity. This electric vehicle unit currently employees around 300 people, and has a working capital of 10 billion yuan ($1.55 billion) and it is headed by Lei Jun.

Ley said at the time the push into electric vehicles would mark his “last major entrepreneurial project“.

In order to boost research and development Xiaomi did purchase Deepmotion (a autonomous driving technology startup) for $77 million

Following recent development Xiaomi founder announced that the company’s first electric car will be an SUV or a sedan, priced between $15,000 to $45,000. This targeted price range is considered to be consumer-friendly.

Xiaomi EV must face some fierce competitors such as the two Chinese rivals Nio and Xpeng, Elon Musk’s Tesla and BYD.

Because of the favorable government support the electric vehicle market industry is continuously growing. In 2021 it is forecasted that 1.9 million electric cars will be sold in China alone. That is a 51% growth over the previous year.