Xiaomi’s $10 billion electric vehicles project is said to hit a regulatory roadblock, in 2021 Xiaomi announced to invest CNY 10 billion(Around $1.5 billion) in Research & Development of Electric Vehicles. In upcoming years Xiaomi eventually invest up to $10 billion.
Xiaomi Beijing-based smartphone company reveals that Xiaomi has faced difficulty to get regulatory approval for its electric vehicles project. China National Development & Reform Commission is not giving them approval for the required license, to Xiaomi, which applied a month ago.
In march 30, 2021, Xiaomi CEO, Lei Jun said that Xiaomi will enter in Electric vehicles business in 2023 and invest $1.5 billion in R&D electric vehicles, over the 10 years we invest up to $10 billion in the EV project, also said that our company 10,000 employees working on the EV project now, we will increase as works increases.
As per Lei jun promise, Xiaomi’s first electric car is ready to launch next month.
Xiaomi mentioned that the only reason for the delay in “license approval” is china’s Stricter scrutiny of EV sector bankruptcies. due to this Xiaomi has postponed the plan for EVs, and will introduce its first electric vehicle in 2024.
Xiaomi, founder Lei Jun, said that the absence of a license has slightly impacted Xiaomi EV development, currently, our 10,000 employees working on the EV project, and a “delay could prolong the drag from hefty R&D expenses as well as fixed asset investments and may weigh on its market share as China’s EV segment is getting increasingly crowded with fast-growing rivals Nio, Xpeng and Li Auto”.
We planned to mass production of the first electric vehicles in 2024. For Mass production, Xiaomi required land in the Southeastern suburbs of Beijings for assembling plants.
Xiaomi already bought Beijing-based autonomous driving technology startup “DeepMotion”, for self-driving technology, with an initial investment of $77.4 million, has a target to help further in the research and development of EV projects to execute fast & capture market competitors.
As I mentioned above, Xiaomi aims to become the market leader in the electric vehicle segment, Xiaomi’s rivals are Tesla, BYD(Build Your Dream) which is a warren Buffett company, and Nio Automotive already launches its first electric car, and others companies like Baidu, china multinational technology, also planned to launch its first electric cars.