Electric vehicles are the future on Earth and smartphone giants are the ones who are quick to recognise it. Tech brands like Apple, Baidu, Foxconn, and even Huawei are jumping into the EV segment which is good for the environment and lighter on p[ockets of consumers.
Now as per Reuters, China’s Xiaomi Corp plans to make electric vehicles (EVs) using Great Wall Motor Co Ltd’s factory. This information was received by the news agency from the three people with direct knowledge of the matter, making Xiaomi the latest tech firm to join the smart mobility race.
The tech firm’s stock price jumped as much as 6.71% in early Friday trade after Reuters reported the plan. Great Wall’s Hong Kong stock rose more than 8% and its Shanghai shares gained more than 7%.
Xiaomi, one of the world’s biggest smartphone makers, is in talks to use one of the Great Wall’s plants in China to make EVs under its own brand, said two of the people, who declined to be identified as the information is not public.
Xiaomi will aim EV at Mass Market
Xiaomi will aim its EVs at the mass market, in line with the broader positioning of its electronics products, the two people said.
Great Wall, which has not before offered manufacturing services to other companies, will provide engineering consultancy to speed up the project, said one of the people.
Both companies plan to announce the partnership as soon as early next week, said one of the people.
Xiaomi and Great Wall declined to comment.
Chinese search engine provider Baidu Inc said in January it plans to make EVs using an auto plant owned by Geely – an automaker with aspirations to offer engineering consultancy and contract manufacturing.
Xiaomi’s founder and chief executive, Lei Jun, believes the firm’s expertise in hardware manufacturing will help accelerate the design and production of its EVs, one of the people said.
Alongside smartphones, Xiaomi makes dozens of internet-connected devices including scooters, air purifiers and rice cookers.
The firm plans to launch its first EV around 2023, one of the people said. It will enable its cars to connect with other devices in its product eco-system, the people said.
Baoding-based Great Wall, China’s biggest pickup truck maker, this year launched a standalone brand for electric and smart vehicles. It is also building an EV factory in China with Germany’s BMW AG.
The automaker sold 1.11 million vehicles last year helped by the popularity of models such as the P-series pickup truck and Ora EVs. It is currently building its first factory in Thailand.