Xiaomi aims to challenge Tesla, BYD lead in EVs, buys $116 million site for new plant

3 months ago | 43 Views

Xiaomi is serious about its electric vehicle plans. Very, very serious. After launching the Xiaomi SU7 electric sports car in China - and showcasing the SU7 in India, the consumer electronics' giant is looking straight at upping its production capacities in its home market. As such, Xiaomi has reportedly purchased a site near Beijing at a cost of $116 million.

As per a Bloomberg report, Xiaomi has purchased the 131-acre site in close proximity to its existing EV-manufacturing facility in Beijing's Yizhuang district. The report cites filings with the Beijing Municipal Commission of Planning and Natural Resources show that the site has been purchased by Xiaomi subsidiary Xiaomi Jingxi Technology Ltd. and that it will be used to manufacture automobiles and ‘new energy intelligent vehicle industry.’

The newly-purchased site may well be part of Xiaomi CEO Lei Jun’s $10 billion plan to establish his company as a dominant player in the Chinese and global EV market. At present, the likes of American Tesla and China's BYD have formidable says in the global EV sales. But most agree that the EV playfield is still on level terms with ample opportunities for newer entrants to make a solid mark.

Xiaomi fast lane, from smartphones to EVs

Xiaomi introduced its first-ever automobile back in March of this year when the Xiaomi SU7 electric sedan was launched at 215,900 yuan or approximately $30,000 and ₹25 lakhs. The SU7 received more than one lakh bookings in six days since launch even though the company has struggled to complete booking orders. What makes the Xiaomi SU7 electric sedan work is that it is powered by two battery choices - 73.6 kWh and 101 kWh, and comes with two and four-motor choices. The SU7 is ferociously quick too with 0 to 100 kmph coming up in a fraction under two seconds. There is 986 bhp of power on the top model while even the base variant has a per-charge claimed range of 700 kms.

But beyond all of these performance-related numbers, there is also the factor of EV buyers being more willing to try new products from newer brands, when compared to those who are looking at buying ‘conventional’ vehicles. This too is what Xiaomi is looking at as it aims to expand its presence, increase sales and spread its EV ambitions.