Xiaomi has now officially expanded its business to the electronic vehicle sector. On Wednesday, the Chinese smartphone giant reportedly has completed the official business registration of its electric vehicle unit.
Xiaomi EV Inc will be the name for the new unit. Upon the opening of Xiaomi EV Inc, the unit registered capital of 10 billion yuan ($1.55 billion). Xiaomi CEO Lei Jun will further act as the legal representative, Xiaomi said in a statement.
The statement further elaborated that the company has employed around 300 staff to join the EV unit. Xiaomi EV Inc, however, is open to recruiting more talents in the company.
In March, Xiaomi confirmed its extent into the electronic vehicle. At the same time, Xiaomi revealed its pledge to allocate $10 billion investment for the next 10 years.
According to Lei, the expansion into electric vehicles would be his “last major entrepreneurial project,” Reuters quotes.
Meanwhile, to prove its determination, Xiaomi further shared to have conducted over 2,000 interview surveys. The company has also made visitations to over 10 industry peers and partners.
Though, there are still few details out related to Xiaomi’s strategy for the automotive sector or vehicle types it intends to launch.
Last week, the company said it purchased autonomous driving technology startup Deepmotion for over $77 million, in an effort to boost research and development.
Earlier in August, Reuters reported that Xiaomi had entered talks with beleaguered real estate giant Evergrande Group to purchase a stake in the latter’s automotive unit.
In response to the news, a Xiaomi spokesperson wrote on the company social media account that it is in touch with several automakers but has yet to decide which one to work with.
Xiaomi’s second-quarter earnings last week beat analyst estimates, with revenues and net profits increasing 64% and 87.4% respectively. The company’s share of the global smartphone market has surged following the retreat of its chief rival, Huawei Technologies Co Ltd in the face of U.S. government sanctions.
Read also: Xiaomi Posted 8B Yuan Profit in Q2
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