Recent reports claim that Xiaomi is having difficulty obtaining a manufacturing license for its electric vehicle project. The Chinese government tightened licensing requirements because many companies were unable to compete in the production of electric vehicles.
China is the first country to produce electric vehicles, and it has produced numerous electric vehicles, including electric bicycles, up until this point.
Electric vehicles have made it simpler for Chinese automakers to obtain a specialized license. Before failing and vanishing, numerous new and established Chinese businesses received government funding.
On the other hand, Xiaomi decided to establish a subsidiary to manage the group’s upcoming “smart electric vehicle business” at the end of March 2021 after extensive deliberation.
In addition, Xiaomi planned to invest 10 billion US dollars in the electric car project over the next ten years at the time.
Xiaomi, a tech giant from China, was seen testing its upcoming electric vehicles in China in January 2023 in snowy conditions. The new electric vehicle was undergoing testing in various conditions.
In other words, the company was testing the car made by Xiaomi in extremely cold and likely manufacturing conditions.
We are aware that tech giants have increasingly advanced in the EV industry. Apple, Oppo, Sony, and a few other well-known brands are still developing electric vehicles. However, it is anticipated that Apple will launch its EV in 2025 or so.
Sony has already launched two electric vehicle concepts under its new mobility brand.
According to reports, Xiaomi submitted its application for a manufacturing license later than was required by the previous regulations. As a result, the company now faces challenges as a result of the new rules.
To expedite the process, Xiaomi acquired the bankrupt German company Borgward. Xiaomi should soon be able to produce automobiles thanks to its acquisition of Borgward.
However, the company has set up a factory in Beijing and invested $1.5 billion in EV Development. Each year, the factory can produce 300,000 units.
The report also says that Xiaomi should quickly get the permit and start making electric vehicles soon with the resources it has.
However, Xiaomi’s research and development team has grown to more than 2,300 members and is constantly putting in a lot of effort to launch its official mass production debut in the first quarter of 2024.
when the car made of soft film arrives on the road in September 2022. Their progress has exceeded expectations despite the fact that the winter testing began at the end of December.
Lei Jun emphasized that Xiaomi’s foray into the automobile industry includes autonomous driving. In the initial phase of their autonomous driving project, nearly 140 vehicles are ready for testing across the region.
Its objective is to emerge as a market leader by 2024. Lei Jun stated, “Xiaomi prioritizes software profits, similar to their approach with their mobile phones,” when discussing profitability. Beyond sales and after-sales services, the future of automobiles presents exciting opportunities for integrating various services.