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Xiaomi to set up subsidiary for smart electric vehicles

By Wang Junwei | chinadaily.com.cn | Updated: 2021-03-31 13:17
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Lei Jun, chief executive officer and founder of Xiaomi, speaks at the company's product launch event on Tuesday in Beijing. [Photo/Screenshot from Xiaomi]

China's tech giant Xiaomi said on Tuesday that it will set up a wholly owned subsidiary to operate its smart electric vehicle business, with 10 billion yuan ($1.52 billion) investment in the initial phase.

The total investment amount is estimated to be $10 billion over the course of the next 10 years, according to the company. Lei Jun, chief executive officer and founder of Xiaomi, will serve as the CEO of the smart electric vehicle business.

"Xiaomi hopes to offer quality smart electric vehicles to let everyone in the world enjoy smart living anytime, anywhere," the company said in a statement Tuesday.

The company can afford its smart electric car unit, with its cash reserves totaling 108 billion yuan by the end of 2020, Lei said.

Other strengths which will boost the company's EV venture include its strong mobile phone business, smart ecosystem and over 10,000-member research and development team, with another 5,000 people to be recruited this year, according to Lei.

At present, Xiaomi has 834 automobile-related patents, including cruise control, vehicle control, navigation and parking information prediction, National Business Daily reported on Wednesday.

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