The Chinese smartphone company, Xiaomi, announced last month that it plans to invest $10 billion over the next decade in an automotive venture, leading many to wonder whether the company intends to launch its own car or simply develop technology related to automobiles.
During a presentation on Wednesday through social media, Xiaomi’s CEO and founder, Lei Jun, stated that the company aims to launch its own electric vehicles, with the first model being a sedan or crossover priced between 100,000 and 300,000 yuan (approximately $15,300 and $45,900).
However, there are significant headwinds. Established automakers are gearing up to launch dozens of electric vehicles, adding to the existing electric offerings and those from the new generation of electric vehicle startups. Xiaomi also faced a US investment ban in January by the Trump administration over alleged ties to the Chinese military, although U.S. District Judge Rudolph Contreras temporarily suspended the ban last month and hinted that it would likely be reversed.
Yet, Xiaomi also brings a lot to the table. The company is currently the third-largest smartphone manufacturer behind Samsung and Apple, with nearly $38 billion in revenue last year. Xiaomi also offers other smart devices, including televisions and even an electric scooter.
Xiaomi’s main rivals in smartphone manufacturing, Apple and Google, have different strategies regarding electric vehicles. While Apple is likely to launch its autonomous electric vehicle, Google has indicated a focus on autonomous driving technology through its Waymo division.
