Lei Jun, the founder, chairman and CEO of Chinese smartphone giant Xiaomi, recently visited China FAW Group in the northeastern province of Jilin for in-depth talks on a partnership.
The information was published on the website of the Jilin provincial government on Saturday, saying that the province's top officials, including Jing Junhai, secretary of the Jilin Provincial Committee of the Communist Party, and Han Jun, governor of Jilin, met with the Lei's team.
Jing said Jilin has a strong industrial base, scientific research strength and talent pool, and the two sides have broad prospects for cooperation in modern new automobile manufacturing and other fields.
He said he hoped Xiaomi would strengthen cooperation with China FAW Group and Jilin's auto industry chain, and actively integrate into Jilin's modern new auto production system.
Lei said that Xiaomi will take the initiative to strengthen negotiations with Jilin automotive enterprises to better solidify the foundation of automotive production and strive to create high-quality automotive products.
(Lei Jun (second from left), founder, chairman and CEO of Xiaomi, talks with senior officials in Jilin province.)
On March 30, Xiaomi announced on the Hong Kong Stock Exchange that it plans to establish a wholly-owned subsidiary to take charge of the intelligent electric vehicle business.
Xiaomi's initial investment in the automotive business will be RMB 10 billion, with an expected investment of $10 billion over the next 10 years.
Xiaomi's automotive business officially completed its company registration in China on September 1 with a registered capital of RMB 10 billion.
Xiaomi's car business has big ambitions, with plans to launch its first model in the first half of 2024 and a new vehicle in each of the following three years, 36kr.com said Friday, citing people familiar with the matter.
Xiaomi is aiming for total sales of 900,000 units in those three years, the report said.
In recent months, Xiaomi has negotiated a partnership with a parts giant and disclosed initial plans for its car business, according to the report.
Today's new energy industry landscape is no longer friendly to new entrants, with leading companies including NIO, Li Auto and XPeng Motors already establishing brand recognition and receiving significant capital support. And traditional car companies are also transforming, launching independent sub-brands to compete.
Citing industry sources who contacted Lei, the report said Lei realized that competition would be fierce when Xiaomi's car was introduced, so he decided to enter the market with a "BOM (bill of materials) loss of 10 percent.