Chinese smartphone maker Xiaomi announced on Tuesday that it will start producing electric cars. The company will invest approximately 8.5 billion euros in the project over the next ten years.
Xiaomi wants to start making smart electric vehicles. For its development, a subsidiary is set up, of which Xiaomi CEO Lei Jun will be the director. Initially, 1.2 billion euros will be allocated for the project, but the company wants to invest more money in the coming years.
Last week it was already leaked that Xiaomi would be interested in the production of electric cars. The smartphone maker seems to be following its American peer Apple, which would also work on a self-driving electric car. Telecom concern and smartphone maker Huawei would also like to enter the electric car market.
The companies rely on cars to be increasingly connected with each other and other things such as traffic lights. They also expect that vehicles will drive increasingly autonomously. As a result, the tech companies see an opportunity to compete with existing car manufacturers.
Source site www.nu.nl