Xiaomi to enter electric vehicle business, investment outlay of $10 billion.

• The Chinese electronics company Xiaomi plans to enter the electric business with an investment outlay of $10 billion.
• Xiaomi CEO Lei Jun will also serve as the CEO of the Electric Vehicle (EV) subsidiary, stated Xiaomi.
• Reports suggest that Xiaomi was in talks with China’s Great Wall Motor Company for EV manufacturing.

Chinese electronics company Xiaomi plans to enter the electric business industry, pledging $10 billion over the next decade to the initiative. On Tuesday, Smartphone company Xiaomi announced that they are going to enter the electric vehicle business.

Xiaomi will operate a wholly-owned subsidiary to manage the electric vehicle business. The company estimates the eventual investment within the company in the next 10 years to succeed $10 billion.

The company expects the 1st phase of investment to be RMB 10 billion. Xiaomi CEO Lei Jun would serve as the CEO of the electric vehicle business, stated Xiaomi.

The Company said, “target to provide a quality electric vehicle to customers, the board of directors resolved to begin the electric vehicle business. The Company will make a wholly-owned subsidiary (the parent company) to manage the electric vehicle business.

The investment initial phase will be touch RMB 10 billion, with the complete investment amount over the next 10 years estimated to be USD 10 billion. Mr Lei Jun (Chinese billionaire entrepreneur) will concurrently serve as the Chief Operating Officer”.

Electric Vehicles Industry
In the coming decades, Electric vehicle’s future is predicted to become brighter and with time the price of batteries, one of the most essential components in an Electric vehicle is reducing significantly which makes it affordable. China is one of the best countries in terms of the mid-priced segment for Electric vehicles.

The worldwide electric vehicle industry is dominated by major players such as BMW (Germany), Volkswagen (Germany), Tesla (US), BYD (China), and Nissan (Japan). These vehicle companies have strong distribution networks worldwide. Additionally, these electric vehicle companies provide an extensive product range in this market. Overall revenue of electric vehicle companies is quite impressive and shows us the great future of EV’s in Asia and other countries as well.

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