Xiaomi Said to Plan Electric Vehicle Production Using Great Wall Motors’ Factory

China’s Xiaomi Corp plans to make electrical autos (EVs) utilizing Nice Wall Motor’s manufacturing facility, mentioned three individuals with direct data of the matter, making it the most recent tech agency to affix the good mobility race.

The tech agency’s inventory worth jumped as a lot as 6.71 p.c in early Friday commerce after Reuters reported the plan. Nice Wall’s Hong Kong inventory rose greater than 8 p.c and its Shanghai shares gained than greater than 7 p.c.

Xiaomi, one of many world’s largest smartphone makers, is in talks to make use of considered one of Nice Wall’s crops in China to make EVs underneath its personal model, mentioned two of the individuals, who declined to be recognized as the data will not be public.

Xiaomi will intention its EVs on the mass market, consistent with the broader positioning of its electronics merchandise, the 2 individuals mentioned.

Nice Wall, which has not earlier than provided manufacturing companies to different corporations, will present engineering consultancy to hurry up the challenge, mentioned one of many individuals.

Each corporations plan to announce the partnership as quickly as early subsequent week, mentioned one of many individuals.

Xiaomi and Nice Wall declined to remark.

The plan comes as eight-year-old Xiaomi seeks to diversify its income streams from the smartphone enterprise which accounts for the majority of its revenue however carries razor-thin revenue margins. It flagged on Wednesday rising prices from a world chip scarcity and reported quarterly income under market estimates.

The transfer additionally comes in opposition to the backdrop of automakers and tech corporations working nearer collectively to develop smarter autos with know-how akin to good cabins and autonomous driving.

Chinese language search engine supplier Baidu mentioned in January it plans to make EVs utilizing an auto plant owned by Geely – an automaker with aspirations to supply engineering consultancy and contract manufacturing.

Reuters has additionally reported Apple and Huawei’s respective auto ambitions.

Xiaomi’s founder and chief government, Lei Jun, believes the agency’s experience in {hardware} manufacturing will assist speed up the design and manufacturing of its EVs, one of many individuals mentioned.

Alongside smartphones, Xiaomi makes dozens of Web-connected units together with scooters, air purifiers, and rice cookers.

The agency plans to launch its first EV round 2023, one of many individuals mentioned. It should allow its automobiles to attach with different units in its product eco-system, the individuals mentioned.

Baoding-based Nice Wall, China’s largest pickup truck maker, this 12 months launched a standalone model for electrical and good autos. It’s also constructing an EV manufacturing facility in China with Germany’s BMW.

The automaker bought 1.11 million autos final 12 months helped by the recognition of fashions such because the P-series pickup truck and Ora EVs. It’s at present constructing its first manufacturing facility in Thailand.

© Thomson Reuters 2021

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