The Chinese multinational electronics company, Xiaomi plans to build Electric Vehicle’s (EV) using Great Wall Motor’s factory.
One of the greatest smartphone makers in the world, Xiaomi is in talks with Great Wall’s plants in China to make Electric Vehicle’s making it the latestr tech firm to join the smart mobility race.
The company will aim to produce Electric Vehicles at the mass market, in line with broader positioning of its electronics products.
Xiaomi already had compact electric scooters ready for retailing, the tech firm’s stock price jumped as much as 6.71% after Reuters announcing the plan. Great Wall motor’s stock in Hong Kong also rose more than 8%.
Great Wall Motor’s which has never before offered manufacturing services to other companies, will provide engineering consultancy to speed up the project.
The plan comes as eight-year-old Xiaomi seeks to diversify its revenue streams from the smartphone business which accounts for the bulk of its income but carries razor-thin profit margins.
It flagged on Wednesday rising costs from a global chip shortage and reported quarterly revenue below market estimates.
This move comes against the drop of automakers and the tech firms working closer together to develop vehicles with technology such as autonomous driving and smart cabins.
Lei Jun, the founder and Chief Executive Officer of Xiaomi
Believes the firm’s expertise in hardware manufacturing will help accelerate the design and production of its Electric Vehicle.
Besides smart phone Xiaomi also makes dozens of internet-connected devices including air purifiers, scooters and rice cookers.
The company plans to launch its first Electric Vehicle around 2023 and It will enable its cars to connect with other devices inits product ecosystem.
