Xiaomi entry adds spice to e-car sector By MA SI/LI FUSHENG | China Daily | Updated: 2021-04-01 09:06 Share CLOSE The logo of Xiaomi is seen inside the company s office in Bengaluru, India, on Jan 18, 2018. [Photo/Agencies]
Xiaomi Corp s decision to foray into the electric car business will further intensify competition in the booming sector, and it remains to be seen how the Chinese smartphone company will leverage its research and development strength to explore a completely new area, experts said.
Their comments came after Lei Jun, chairman of Xiaomi, said the company will set up a wholly owned unit for the smart electric vehicle business, with an initial investment of 10 billion yuan ($1.52 billion). The total investment over the next decade is estimated to be $10 billion.
Xiaomi entry adds spice to e-car sector
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Baidu s decision to produce cars have caused a stir in the capital and automotive markets, but the Chinese tech company is more likely to build robotaxi fleets than sell vehicles to individual customers, analysts said.
The company announced its plan last week to build a standalone car company to produce and market passenger vehicles, using Chinese carmaker Geely s electric vehicle architecture.
Baidu did not offer details on how its vehicles will be different than those from Tesla or any other gasoline car challenger or when the vehicles will hit the market.
Though much remains a mystery, the news drove investors into a frenzy. Baidu s stock price hit $249 on Friday, the highest since July 2018 and up from around $180 in December, when Reuters first reported its intention to make cars.