Chinese handset maker Xiaomi has formally announced plans to enter the automotive industry with a new smart electric vehicle (EV) business.
The firm will initially invest 10 billion yuan ($1.52 billion) in a wholly-owned subsidiary, with a total investment goal of $10 billion over the next 10 years, the company said on Tuesday in a filing.
Xiaomi CEO and founder Lei Jun will also serve as CEO of the smart electric vehicle unit, the company said.
Screenshot of Xiaomi's filing with the Hong Kong Stock Exchange (HKSE) on March 30, 2021. /HKSE
Before the plan, the Beijing-based technology company said it had already carried out research and development related to automobiles and started exploring peripheral technologies.
The handset maker has 834 auto-related patents, in which the invention patents exceed 96 percent, according to PatSnap, a SaaS platform providing intellectual property listing service.
Read more: Is Xiaomi prepared to step in the NEV sector?
Xiaomi's move to the EV market is not a complete surprise, as Lei has already invested in NIO through his venture capital firm Shunwei Capital, which was NIO's first institutional investor. Lei has also invested in Guangzhou-based Xpeng.
In 2014, Xiaomi bought into digital map firm Careland. Last year, the handset maker became a strategic investor in in-car service system developer Shanghai Pateo Electronic Equipment Manufacturing.
(Cover via CFP)