A popular Smartphone retailer and we are not talking about Apple or Samsung, is entering the electric car industry.
Xiaomi, the Chinese Smartphone company on Tuesday, announces how they will be investing around $10 billion in the next 10 years in the business of smart electric vehicles. Their main focus has turned to this industry.
In the stock market filling, Xiaomi announces that the billionaire Lei Jun will lead the new department.
In a statement, Lei Jun stated:
The decision got made after numerous rounds of deliberation among all our partners, and this will be the final major entrepreneurial project of my life.
In the starting, the company has said it will invest around 10 billion yuan, that’s $1.5 million.
Xiaomi is a large retailer company for Smartphones. However, they also produce many other devices from security cameras to electric brushes, to light bulbs to scooters and watches.
The company has not yet let out the strategy of how it will enter the automotive industry and has said nothing about whether they will focus on the software or the manufacturing or both of these things.
Even though the plans are not known, the thing that is known is the fact that it is entering a market with many competitors.
Xiaomi will have to face huge companies that are trying to make electric scales like Tesla, or General Motors, and even traditional manufacturers of cars like Volkswagen.
All of these have been working for years now to make and dell an electric car according to the needs of a consumer.
That is why the electric car industry is not easy, and many are awed by the courage that Xiaomi has shown.
There even was a rumor about Apple, and how it’s going public with a plan to produce an electric car in partnership with another popular company.
Many tech companies are now trying to make partners with different car producers because they hope to capitalize on this huge market that needs a software application like autonomous driving.
Earlier this week, the analyst at Wedbush Securities, Dan Ives, wrote how the electric vehicle industry is just starting to transform.
Furthermore, Dan Ives said:
This industry is on the cusp of a $5 trillion market opportunity over the next decade. With GM, Ford, and Volkswagen all jumping into the deep end of the pool on electric vehicles, it speaks to the massive pent up demand globally around electric vehicle technology on the horizon.
Many other technology companies in China are pointing towards them entering the car markets and making new technologies for the cars.
Like Xiaomi, the search engine Baidu also announced it entering the electric car industry.
The S&P Global Platts, the data provider estimated that around 20 % of the new energy vehicles’ total sales will get made in China.