Xiaomi, one of the world’s largest smartphone manufacturers, plans to make electric vehicles(EVs), Reuters sources have revealed. The Chinese smartphone maker intends to produce EVs at the Chinese auto giant Great Wall Motor’s factory. However, no official announcement has been made by either of the companies.
The sources said the companies plan to reveal the collaboration as soon as next week.
The first EV model is expected to be launched in 2023.
Although Xiaomi is one of the biggest smartphone makers, its profit margins are considerably low and in recent times it’s facing problems such as chip shortage. The intention behind the production of EVs can help Xiaomi diversify its revenue streams and generate more substantial income.
According to a source, Lei Jun, Xiaomi’s founder and CEO, believes the company’s expertise in hardware manufacturing will contribute significant support in the production of its own EVs.
Besides Xiaomi, tech giants such as Apple Inc and Huawei Technologies Co Ltd have been also rumored to be planning to manufacture their own EVs.
Baidu, the Chinese internet search engine company, has already announced, in January, its plan to produce EVs in partnership with Geely – a Chinese multinational automotive company.
Xiaomi has already produced varieties of internet-connected devices such as e-scooters, rice cookers, smart televisions, and air purifiers. And now, the firm is aiming to make its own electric cars that can be connected with other devices manufactured by the firm.