Xiaomi’s $10 billion EV program struggles to secure Beijing’s support

As reported by Bloomberg News, Xiaomi’s difficulty in securing a carmaking license in China could hinder its EV development and postpone the planned launch to 2024. The delay could prolong the drag from heavy R&D expenses as well as real estate investments and weigh on market share as China’s EV segment becomes crowded with fast-growing rivals Nio, Xpeng and Li Auto. has been

China is intensifying investigations into the EV sector following a boom in the industry following high-profile bankruptcies. New EV applicants are asked to submit a series of documents to prove their financial and technical capabilities, and the review process can take months. The government sometimes rejects applications, leaving companies back in the first category when it comes to the regulatory process.

One of the people said that the absence of a carmaking license has had a limited impact on Xiaomi’s EV development efforts. The EV division has over 1,000 employees and Xiaomi has said that it plans to mass-produce its first vehicle in 2024. It has acquired land for an assembly plant in Beijing’s southeastern suburbs, and bought EV startups to add technology.

In early 2021, Lei promised to invest about $10 billion over 10 years to create Xiaomi-branded cars. The 52-year-old has largely retreated from the public eye to spend time on the EV project.

China’s electric car market is already crowded, with the biggest players including Tesla Inc., NIO and Warren Buffett-backed BYD. Baidu Inc. From Huawei Technologies Co. An increasing number of tech companies are looking for business opportunities in autonomous driving, smart cockpits and power management technology.

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