Xiaomi is planning to produce electric vehicles for the "mass market." The Chinese smartphone company will be taking the Great Wall Motor Company's help for assembling its electric vehicles.
Xiaomi is not the only tech company looking to develop electric vehicles. Apple is also developing a self-driving electric vehicle, though its launch is still at least half a decade away.
Xiaomi Could Partner With Great Wall Motor to Make Electric Vehicles
Citing people with direct knowledge about this matter, Reuters reports that Xiaomi is in talks with the Great Wall Motor to use its factory in China to make electric vehicles under its own brand. The EVs will be made for the "mass market" similar to its smartphones and other electronic products.
Apart from providing its manufacturing resources to Xiaomi, Great Wall Motor will also provide engineering support to speed up the project.
Xiaomi is planning on launching its first EV in 2023. The vehicle will integrate with other products in its ecosystem, though it was not detailed how this integration will work.
Both companies are expected to announce their partnership in the last week of March. Xiaomi is hosting an event in China on March 29, and it is possible we can see the company announce this partnership and its intention to make EV vehicles at the event.
Great Wall Motor Is a Renowned Pickup Truck Maker in China
Great Wall Motor is China's largest pickup truck maker, already sells EVs under its Ora brand in China. It is also working with BMW to build an EV factory in China.
Xiaomi is currently one of the world's largest smartphone makers. However, the company is looking to diversify its revenue stream as its smartphone business has a very slim profit margin.
Xiaomi is not the first Chinese tech giant that's considering dabbling in making EVs. Baidu, the largest search engine in China, has entered into a partnership with Geely, as Reuters reports, to set up a new company to make smart EVs. Geely will be manufacturing the vehicles and providing engineering support.
Xiaomi's Electric Car Could be Priced Competitively
If the talks between Xiaomi and Great Wall Motor do go through, it could mean that Xiaomi's EVs' pricing will be very competitive and cheaper than other electric vehicles in the market. The company has always played the value card with its products, and a similar scenario can play out here.
