Xiaomi Corporation—an internet company with smartphones and smart hardware connected by an Internet of Things (IoT) platform at its core—is launching its smart electric vehicle business with an official notice to Hong Kong Stock Exchange (HKEX).
Lei Jun, Founder, Chairman and CEO of Xiaomi, stated during a March 2021 launch event that the EV business will be operated under a Xiaomi wholly-owned subsidiary with an initial investment of RMB 10 billion (US$1.5 billion). Over the course of the next 10 years, Xiaomi is committed to invest an estimated US$10 billion in total. Lei Jun will concurrently serve as the CEO of the smart electric vehicle business.
The decision was made after numerous rounds of deliberation among all our Partners, and this will be the final major entrepreneurial project of my life. I am willing to put all my personal reputation on the line and fight for the future of our smart electric vehicle! I am determined to lead my team to fight for the success of the Xiaomi electric vehicle.—Lei Jun
According to its latest financial results, Xiaomi’s global smartphone shipments reached 146 million, upholding the company’s position in the top 3 globally. The sales of premium smartphones have exceeded 10 million units. TV sales have topped the Mainland China market for 8 consecutive quarters. With more than 324.8 million connected devices on Xiaomi’s AIoT platform and monthly active users for XiaoAi AI Assistant reaching 86.7 million, Xiaomi continues to lead the smart home industry. By the end of 2020, the Group held a cash reserve of RMB 108 billion (US$16.5 billion).
In an internal letter to employees, Lei Jun stated that Xiaomi has distinct and unique advantages in manufacturing cars:
Smart electric vehicles have fundamentally transformed the business model of the traditional automotive industry, and Xiaomi has the deepest understanding of the hardware-based internet service business model;
Xiaomi has the most extensive experience in software and hardware integration, and the most profound manufacturing know-how within the internet industry;
Xiaomi has numerous core technologies that can be applied to smart electric vehicle business;
Xiaomi has a powerful brand and strong user base, with trust and support from Mi Fans across the globe; and
Xiaomi has abundant cash resources that allow Xiaomi to invest with confidence.
Smart electric vehicles represent one of the largest business opportunities in the next decade and represent an indispensable component of smart living. Entering this business is a natural choice for us as we expand our smart AIoT ecosystem and fulfill our mission of letting everyone in the world enjoy a better life through innovative technology.—Lei Jun