Chinese smartphone giant Xiaomi Corp will construct a plant in Beijing which can produce 300,000 vehicles per year for its electric vehicle unit, authorities in the capital said on Saturday.
On its official WeChat account, the Chinese Communist Party (CCP) backed economic development agency Beijing E-Town disclosed that the plant will be constructed in two phases. Xiaomi will also build its auto unit’s headquarters, sales, and research offices in the Beijing Economic and Technological Development Zone, according to Reuters.
In October, Xiaomi’s Chief Executive Lei Jun announced that the plant targeted mass production in 2024. The company finished the business registration of its EV unit in late August.
In March, Xiaomi declared its commitment to investing $10 billion in a new electric car division over 10 years, Reuters added.
The company has been opening thousands of stores to push domestic sales growth for its smartphone business but finally intends to use these shops as a channel for its plans to sell electric vehicles.
Recently, investors’ vision has been captured by the boom in electric vehicles, with Tesla’s market valuation surging past $1 trillion this year and plenty of fresh challengers securing listings via blank-check companies.
However, the business, in reality, may ultimately differ from dreams. For example,
Chinese billionaire businessman and chairman of Evergrande Group, Hui Ka Yan’s ambitions to take on industry giants like Tesla Inc, Evergrande still has yet to deliver a single vehicle while struggling to shed assets to stave off default as it faces more than one $300 billion debt.
Bloomberg reported on Nov. 3 that China Evergrande Group’s automotive unit is selling the U.K. startup Protean Electric to e-mobility company Bedeo as part of the developer’s asset sales plan to pay down its debt.