Chinese Xiaomi completes registration of electric vehicle unit

The Xiaomi logo can be seen in a Xiaomi store in Shanghai, China on May 12, 2021. REUTERS / Aly Song

SHANGHAI, Sept. 1 (Reuters) – Chinese smartphone giant Xiaomi Corp (1810.HK) announced on Wednesday that it has completed the official registration of its electric vehicle unit, marking the latest milestone in its automotive breakthrough.

The new unit, which will be called Xiaomi EV Inc, opened with registered capital of 10 billion yuan ($ 1.55 billion) and Xiaomi CEO Lei Jun as legal representative said Xiaomi in a statement.

Some 300 people have so far been employed to join the EV unit and it continues to recruit talent, he said.

The smartphone maker, which became the world’s second best-selling brand behind Samsung (005930.KS) in the second quarter, confirmed its foray into electric cars in March, pledging to invest $ 10 billion over the years. Next 10 years. Read more

Lei said at the time that the electric vehicle surge would mark his “last big entrepreneurial venture.”

Xiaomi said on Wednesday that it has conducted more than 2,000 interview surveys and visited more than 10 industry peers and partners. However, he has revealed few details on his strategy for the auto industry or the types of vehicles he plans to launch.

Last week, the company announced that it had bought autonomous driving technology startup Deepmotion for more than $ 77 million, with the aim of boosting research and development Read more.

Earlier in August, Reuters reported that Xiaomi had started talks with beleaguered real estate giant Evergrande Group (3333.HK) to buy a stake in the latter’s auto unit. Read more

In response to the news, a spokesperson for Xiaomi wrote on the company’s social media account that he was in contact with several car manufacturers but had not yet decided which one to work with.

Xiaomi’s profits in the second quarter of last week topped analysts’ estimates, with revenue and net profits increasing by 64% and 87.4% respectively. The company’s share of the global smartphone market has increased following the withdrawal of its main rival, Huawei Technologies Co Ltd (HWT.UL) in the face of sanctions from the US government.

($ 1 = 6.4626 yuan Chinese renminbi)

Reporting by Josh Horwitz; edited by Richard Pullin

Our Standards: Thomson Reuters Trust Principles.

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