In a strategic move to diversify beyond its smartphone business, Xiaomi has ventured into the electric vehicle (EV) market, unveiling its SU7 sedan last week. This transition, first hinted at in 2021, marks Xiaomi’s ambitious foray into a new sector amid stagnating demand for smartphones.
Partnering with a unit of state-owned automaker BAIC Group, Xiaomi is set to produce its cars in a Beijing factory with an annual capacity of 200,000 vehicles. The company has pledged a hefty $10 billion investment over the next decade, positioning itself as one of the few newcomers in China’s EV arena to gain approval from authorities amidst concerns over a supply glut.
