Tesla Gets A New Chinese EV Competitor In Xiaomi

Tesla’s electric car rivals in China are continuing to grow as smartphone maker Xiaomi announced Tuesday that it is jumping into the EV arena.

The company said in a regulatory filing that it will invest $10 billion into its electric car business over the next 10 years as it sets up a wholly-owned subsidiary. Its initial investment into the car unit will equal 10 billion yuan, or about $1.52 billion, according to the filing.

Xiaomi may invest up to 100 billion yuan into the electric vehicle business over the course of the next three years, taking external financing into account, with 60% contributed by the company and the remaining balance in raised funds, sources told Bloomberg before the company’s announcement.

At the helm of the smart electric vehicle business will be Xiaomi CEO Lei Jun. The company said in its filing that it “hopes to offer quality smart electric vehicles to let everyone in the world enjoy smart living anytime, anywhere.”

According to CNBC, Xiaomi is the world’s third-largest smartphone maker. Its entry into the EV market makes it the latest Chinese venture to try to capitalize on the growing market in China.

The new electric vehicle manufacturer will compete against some heavy hitters as the industry is packed with Chinese automakers that rival Tesla. Geely, BYD, Nio, Xpeng, and recent entrant Baidu also compete in the space, offering affrdable EVs to Chinese consumers.

Research from Canalys, as reported by CNBC, estimates that 1.9 million electric vehicles will be sold in China in 2021, up 51% from a year ago.

Xiaomi is not the first tech company to enter the electric vehicle market. Apple and Huawei Technologies also have their sights set on the sector as the autonomous industry is expected to grow, Bloomberg reported.

Apple has been rumored to announce a tie-up with an automaker for a self-driving car, but the company has been mum on the subject.