Xiaomi to partner with big Chinese car maker for first electric car production: Report

Xiaomi is reportedly in talks with a major automobile manufacturer in China, in order to speed up its electric car production. The new report suggests that Xiaomi is planning to partner up with Beijing Automotive Group Co. in order to produce electric vehicles. The company has previously promised to make its own cars in the year 2024.

In order to complete development in the next two years, Xiaomi is planning to even buy a stake in Beijing Hyundai No. 2 plant, according to a report by Bloomberg. The report states that this factory is completely licensed to make cars in China. It also cited people with knowledge about the deal claiming that Xiaomi is eyeing a production tie-up. The Chinese smartphone makes is currently facing delays in acquiring licenses to start making cars.

The report suggests that Xiaomi will be partnering with the EV brand of Beijing Automotive called BAIC BluePark New Energy Technology. The plant No. 2 is currently under-equipped to build new electric cars. The EV brand BluePark, however, has a production capacity that could be used to make Xiaomi-BAIC vehicles, said the report.

While the negotiations are still on, the deal could be far from final. Xiaomi hasn’t made any official statement about the partnership. The company’s co-founder Lei Jun had promised to invest $10 billion in the production of Xiaomi electric cars. Xiaomi announced its interest in making electric vehicles last year and the company started building its first EV factory earlier this year. The plant in question is expected to have a capacity of 3 lakh units.

Xiaomi is not the only tech company that is aiming at the EV sector. American giant Apple is also planning to introduce its first electric car as early as 2025. However, the company has been hitting a lot of obstacles in developing Project Titan.

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