China smartphone maker Xiaomi to make investments $10 billion in new EV device around 10 many years

SHANGHAI (Reuters) -Chinese smartphone maker Xiaomi Corp has formally entered the automotive business with a new good electrical vehicle (EV) small business, the company announced on Tuesday in a submitting.

FILE Photo: The brand of Xiaomi is noticed inside of the firm’s business in Bengaluru, India, January 18, 2018. REUTERS/Abhishek N. Chinnappa

The company will originally spend 10 billion yuan ($1.52 billion) in the wholly-owned subsidiary, with a whole investment aim of $10 billion more than the future 10 several years.

Xiaomi CEO Lei Jun will also serve as CEO of the smart electric powered motor vehicle device, the enterprise additional.

The company’s shift into the EV industry follows comparable steps by other tech giants, both in China and overseas.

In January, Chinese look for big Baidu Inc announced it would produce an EV unit by way of a partnership with domestic car maker Geely Auto Holdings Ltd.

In February, Reuters described that beleaguered Chinese smartphone huge Huawei Technologies Co Ltd is at the moment in talks with point out-owned automaker Changan Vehicle and other providers to manufacture EVs.

Apple Inc has also lengthy been arranging an entry into the EV market place, in accordance to reviews.

Last 7 days Reuters noted solely that Xiaomi was in talks to partner with Chinese automaker Great Wall Motor Co for support in manufacturing EVs.

Xiaomi declined to comment on the report, although Excellent Wall claimed in an trade filing that it experienced not mentioned these kinds of a partnership with Xiaomi.

($1 = 6.5647 Chinese yuan renminbi)

Reporting by Josh Horwitz, editing by Louise Heavens, Kirsten Donovan