Xiaomi, primarily known for its budget smartphone, has followed the footsteps of HUAWEI and entered the Electric Vehicle (EV) business. The company today announced that it has completed the official formalities and has set up a new business venture called Xiaomi EV Inc. The new business unit comes shortly after Xiaomi’s announcement of acquiring the self-driving technology company DeepMotion.
For now, Xiaomi’s CEO Lei Jun will be the in-charge of Xiaomi EV. Xiaomi has invested $1.5 billion (or 10 billion CNY) in the business unit. The company has hired over 300 employees for the new business unit and plans to $1.5 billion over the course of the next ten years. This team has reportedly already started doing research on the market and the global EV supply chain. Lei Jun says EV will be his last major entrepreneurial project.
“Our team has conducted a massive amount of user research in the last five months. The team has visited industry partners pressing ahead with the EV product definition and team formation.”
The company hasn’t unveiled a car yet. Xiaomi has only announced the registration of its new EV business unit, so it is expected that the company would roll out a car at some point in the future, or something partly related to EV.