Xiaomi Completes Process to Build Its Second Electric Car Factory in China

Xiaomi Is Streamlining Processes So That Production of Its First Electric Cars Can Be Started as Soon as Possible, Recently Completing Construction of Its Second Factory in Shanghai.

Xiaomi aims to accelerate its production schedule so that its first electric cars are unveiled in 2022. According to sources within the company, the Chinese giant is also finalizing plans to build a second factory of electric cars in Shanghai. According to leaked documents from the China Qichacha database, Xiaomi Auto Technology is gathering a range of suppliers for the factory construction; furthermore, the company is also looking for several other suppliers located in Shanghai.

Construction of Xiaomi’s New Electric Car Factory Is in Full Swing

Xiaomi plans to partner with companies specialized in supplying electric car assembly lines, in batteries for vehicles as well as in the production of welding equipment. The Chinese company also plans to purchase press machines, services for autonomous driving simulation, and safety evaluation equipment.

Currently, Xiaomi Auto Technology operates only one factory in the Chinese capital, Beijing. The facility is being used to assemble the brand’s first electric cars and to conduct assembly tests. However, Xiaomi knows that the demand for electric cars is high and that the current assembly capacity is low, thus the construction of another factory located in Shanghai could solve this bottleneck.

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It is important to emphasize that Shanghai is one of the most competitive cities in China for the electric car sector, as it has a large capacity of installed factories, parts supply companies, and also favorable maritime transport for export.

Xiaomi Invests $10 Billion in the Segment

During the announcement about the development of its first electric cars last year, the Chinese company revealed it will invest approximately $10 billion in its new division.

At the time, Xiaomi’s president, Lei Jun, presented himself as responsible for developing the entire project, and the team already consisted of about 500 participants focused on developing the vehicles. Additionally, the company’s expectation is that its factory will have the capacity to produce 300,000 vehicles.

The Chinese multinational has yet to disclose any information about the models that will be produced; however, it is possible to expect that the vehicle will be equipped with state-of-the-art technology in terms of connectivity and safety. Xiaomi intends to adopt the same strategy that Apple will use in its vehicles, where the model can deliver all functionalities through the owner’s smartphone.

About Xiaomi

Xiaomi is a multinational technology and electronics manufacturing company based in Beijing. The company develops, invests, produces, and distributes smartphones, smartbands, laptops, smart home devices, televisions, headphones, and various other products. Its founder, Lei Jun, ranks 25th among the richest people in China.

The company sold over 60 million phones in 2014, and in the third quarter of 2019, it sold 32.7 million smartphones. Currently, the company has 17,000 employees spread across China, Malaysia, and Singapore, expanding to other countries like India, the Philippines, and Indonesia.

The company holds the title of the 5th largest smartphone producer in the world, with a 10% share of the global smartphone market. The company also holds the 4th largest share of the global market in its sector.