Xiaomi has always been keen to diversify its activity. And the firm proves it once again by announcing the creation of a new subsidiary with a capital of 10 billion dollars. A subsidiary which will focus on the development and marketing of electric cars.
Xiaomi has not had an easy history. The firm has indeed come close to filing for bankruptcy on several occasions, but it has always been able to bounce back.
The secret of its success is based mainly on two elements: the very good quality / price ratio of its products and the richness of its catalog.
Xiaomi launches into electric cars
Because Xiaomi is not confined to smartphones or tablets. The company is also present in the quantified self sector , connected lighting, home automation or even ready-to-wear.
But if you know her a little, then you also know that she has been interested for several years in everything related to mobility, especially through her electric scooters.
The time now seems to have come to go further. The world number two in telephony has indeed announced by way of press release the constitution of a new subsidiary. With a capital of 10 billion dollars, the latter will aim to design, develop, produce and market electric cars.
10 billion to start
Lei Jun, the CEO of the group, has never hidden his interest in this market and he had even recruited several hundred specialized engineers a little earlier in the year. In April, he even mentioned the possibility of launching in the more or less near future a sedan or an electric SUV.
And now, the time seems to have come to walk the talk. With this very substantial budget, this new subsidiary will indeed have all the latitude to work on a first electric vehicle.
A strategy that of course makes sense in the current context. If electric cars have long been shunned, they have experienced a real boom in recent years. So much so that most manufacturers have launched models of this type. Renault, of course, but also Volkswagen and Honda.
And if we add to this the undeniable success of Tesla, we obtain a particularly promising market and which should ensure good growth for Xiaomi for the next few years.