Xiaomi is embarking on a groundbreaking journey into China’s competitive car manufacturing industry. Despite the challenges posed by the vast automobile market, Xiaomi’s entry into electric car production is poised to disrupt the status quo and compete with established manufacturers. Notably, tech giants such as Apple and Sony have also ventured into car manufacturing, with Sony even unveiling a prototype electric car developed in collaboration with Honda.
Strategic Phases and Construction Timeline
Xiaomi’s car factory construction is strategically divided into two phases. Phase 1, spanning a substantial 720,000 square meters, commenced in April 2022 and is on track for completion by June 2023. Phase 2 is scheduled for 2024-2025. This cutting-edge facility will comprise four buildings and a state-of-the-art testing facility, with the ambitious goal of achieving an annual production capacity of 150,000 vehicles. Significantly, the factory successfully passed inspection on June 12, marking a pivotal milestone. Xiaomi’s cars have been spotted undergoing rigorous testing across diverse weather conditions.
A Glimpse into Xiaomi’s Car Factory
Situated in Beijing’s Yizhuang district, Xiaomi’s car factory occupies an undeveloped area, bordered by an office park, Beijing Fangxindian, and open land to the south. The facility currently exudes a tranquil ambiance, with minimal employee activities and subdued construction noises. A solitary security guard vigilantly oversees the unfinished southeastern entrance. Spanning from Tongyi Road to Huanjing West First Road, and from Jingsheng South Fourth Street to Yitong Street, Xiaomi’s car factory embodies a vision of innovation and automotive excellence.
Xiaomi’s Vision and Financial Success
Xiaomi’s CEO, Lei Jun, radiates confidence as he anticipates full-scale car production by early 2024. This aligns seamlessly with Xiaomi’s ambitious aspiration to establish itself among the world’s top five car manufacturers.
Xiaomi’s financial performance in Q2 2023 echoes a positive outlook, with quarterly revenue reaching an impressive 67.4 billion yuan ($9.4 billion), reflecting a 13% increase compared to the previous quarter. Notably, the adjusted net profit has witnessed remarkable year-over-year growth, surging by 147% to reach 5.1 billion yuan ($714 million), surpassing market expectations. Xiaomi’s strategic investments, particularly in the electric vehicle sector, have also surged, amounting to 1.4 billion yuan ($196 million), with plans underway to roll out 100,000 EVs in 2024.
Xiaomi’s Commitment to Automotive Innovation
Lu Weibing, President of Xiaomi Group, underscores the company’s unwavering dedication to the automotive sector. Xiaomi is poised to intensify investments in extensive research and development, striving to secure a prominent position among the world’s top five global car manufacturers. Xiaomi’s resolute commitment extends to the establishment of its very own car factories, marking a significant leap towards reshaping the future of the automotive industry.
