Xiaomi officially registers the electric vehicle business run by the founder


Xiaomi CEO Lei Jun will hold a press conference on Xiaomi’s new logo and car manufacturing in Beijing, China on March 30, 2021.

VCG | Visual China Group | Getty Images

GUANGZHOU, China – Chinese smartphone giant Xiaomi has officially registered its electric vehicle business and said the division has entered “a significant phase of development,” the company said.

The subsidiary is called Xiaomi EV, Inc. and was founded with previously announced registered capital of 10 billion yuan ($ 1.55 billion).

In March, the Beijing-headquartered company announced it would start an electric car business and invest $ 10 billion over the next decade.

Xiaomi EV now has 300 employees, the company said, and the business is led by the group’s founder and CEO, Lei Jun.

Xiaomi said its electric vehicle team had “done massive user research” over the past five months. It has also visited industry partners while “driving EV product definition and team building”.

The company has yet to unveil a car.

Earlier this month, Xiaomi announced that it had acquired Deepmotion autonomous driving company for approximately $ 77.37 million to “improve the technological competitiveness” of its electric vehicle business.

Read more about electric vehicles from CNBC Pro

Known for its smartphones and other internet-connected hardware, Xiaomi is jumping into an incredibly crowded space in China among startups like Nio and Xpeng, as well as established players like Tesla and Warren Buffett-backed BYD, a Chinese automaker.

Xiaomi shares rose about 1.4% in Hong Kong afternoon trading, outperforming the broader Hang Seng index.