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Tesla’s breakthrough in the automotive market continues to impact tech companies. Following rumors about the Apple Car and Huawei’s work in electric vehicles, Xiaomi has accelerated its entry into the segment, looking to forge alliances with one of Asia’s most important automotive groups: Beijing Automotive Group Co (BAIC).
According to Bloomberg, Xiaomi will face delays in obtaining production licenses on its own, and this problem can be solved with a logistics partner such as BAIC.
In the case of car production in China, the conditions to allow the car to be produced go through government regulatory agencies to obtain an operating license. Due to delays in the approval process, EV brands are signing agreements with traditional automakers to streamline their processes.
Xiaomi is looking for a builder for their cars
According to the report, Xiaomi and BAIC are looking into options to enable the production of electric vehicles at Hyundai’s Beijing Plant 2, which has a license to operate.
This alliance, according to sources consulted, will produce Xiaomi-branded vehicles under BAIC’s BluePark New Technology division. To speed up the process, large investments are needed in this plant.
Negotiations are still in progress
Despite the clarity of the agreement, negotiations are still at a preliminary stage and there are no guarantees that it can be approved by both parties. However, the trend is clear: China is pushing the convergence of these M&A initiatives to make efficient use of resources.
The use of Plant 2 will complement Xiaomi’s work at its main plant in Beijing, the same one that started construction in early 2022 and will support a speed of 300,000 vehicles a year when it reaches full capacity.
The brand’s forecasts point to an entry into the electric vehicle market in 2024 before Apple can unveil its first prototypes.
The category of “intelligent driving” continues to grow globally thanks to tax incentives for the installation of electric stations and the importation of public and private vehicles as part of a mass migration to eliminate the use of fossil fuels within 10 years.
Various cities around the world have begun closing their doors to diesel vehicles, while offering hybrid or electric vehicles is still a popular transition to 100% electric vehicles.
Source: RPP
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.