Xiaomi in partnership with auto industry

Xiaomi, one of the leading brands of user electronics, is preparing to enter the electric vehicle (EV) sector. This is no longer a new thing. But doing this on its own will be a difficult task and the Chinese company is well aware of this. Therefore, Xiaomi Corp. has reportedly been in talks with several local carmakers to form partnerships that will allow it to gain a foothold in the highly competitive but highly lucrative EV playfield.

China is the world's largest automobile market. It is also the largest EV market in the world. Xiaomi is a strong player in the consumer electronics sector here, so the company wants to perform well in the mobility sector as well. According to a media report, the company has reached out to several Chinese car companies to explore possible partnerships. This list includes companies like Brilliance Auto Group Holdings Company and Chery Automobile Company.

Xiaomi has big and clear objectives. It wants to introduce electric cars under its own brand name. This is even though it has not yet received government permission to manufacture its products in China. Approval is still awaited from the country's Ministry of Industry and Information Technology. Therefore, it is being speculated that Xiaomi wants to partner with a car manufacturer to manufacture its models.

Why is Xiaomi coming into this area?
Xiaomi is a big player in the smartphone sector but also offers many other consumer products like television sets, vacuum cleaners, air purifiers and even smart locks. Battery-powered hoverboards and microcycles are also available in select markets. But making electric cars is the ultimate objective of the company. And there are reasons for this too.

The Chinese EV market is expected to grow rapidly in the coming time. The government is committed to taking EVs to a wider set of buying audiences and earlier this year, a roadmap was also drawn up to take such vehicles to rural parts of the country. Subsidies have been brought back to increase demand and hence sales.

There is intense competition between local and global players, but most experts agree that the market is large enough to accommodate existing and new participants. This is a fertile ground that Xiaomi wants to cultivate aggressively. Xiaomi co-founder Lei Jun had earlier promised to invest about $10 billion for the development and manufacturing of EVs. And as the smartphone business continues to boom, entering the mobility space could allow the brand to expand its reach.