Chinese technology group Xiaomi is in talks with BAIC for a partnership to produce electric vehicles. Investing in Hyundai's Beijing plant should also be considered, according to reports.
It is said to be Beijing and Hyundai Plant No. 2, owned by a joint venture between BAIC and Hyundai. The plant already has a license to manufacture cars in China. Last November, Xiaomi released plans to build an electric vehicle factory in Beijing and sell electric vehicles from 2024.
Accordingly, the plant will be built in two phases and will produce first 150,000 and then 300,000 electric vehicles per year. As part of its plans, Xiaomi has not only moved the headquarters of its newly established automotive division to Beijing, but also the sales and research offices. But apparently, Xiaomi is facing delays in obtaining a license for its own production of cars.
One solution is said to be the aforementioned participation in the Hyundai plant in Beijing. But even an aging factory will first have to be modernized at a great cost. Electric vehicles can be produced under the BAIC BluePark New Energy Technology brand and sold under the Xiaomi brand. According to the report, BluePark should have spare capacity.
At the end of March 2021, after much deliberation, Xiaomi made the decision to set up a subsidiary to manage the group's future "smart electric vehicle business". At that time, Xiaomi announced that it wanted to invest a total of ten billion US dollars in the electric vehicle business over the next ten years. To this end, Xiaomi launched a subsidiary called Xiaomi Automobile Technology.
In total, the Chinese smartphone maker plans four EV models – two mid-range models in the 150,000 to 200,000 yuan price range and high-end models in the 200,000 to 300,000 yuan price range. The first prototype should be presented in the third quarter of 2022. It was recently announced that Xiaomi has selected CATL and BYD as battery suppliers for its first electric car.