's engineering vehicle has been completed and the software integration of the vehicle can be completed in mid-October, followed by the opening of various tests, according to local media.

(Image credit: Xiaomi)

Xiaomi will most likely not acquire a factory of Beijing Automotive Group Co (BAIC Group) and has no intention to adopt the OEM production model, but will build its own factory, local media Sina Tech said today, citing two sources familiar with the matter.

Based on the 2024 mass production schedule, there is still time for Xiaomi to build its own factory to produce electric cars, the sources said.

Xiaomi officially announced it was joining the car-making bandwagon on March 30 last year, saying its initial investment in the car business would be RMB 10 billion ($1.54 billion), with an expected investment of $10 billion over the next 10 years.

At the end of November last year, Xiaomi signed a contract with the Beijing Economic and Technological Development Area Management Committee to build a headquarters base for its auto business and its sales and R&D headquarters in Yizhuang, and will build a factory with an annual production capacity of 300,000 EVs.

The plant will be built in two phases, with annual production capacity of 150,000 vehicles in the first and second phases, respectively, an announcement at the time said, adding that Xiaomi's first car is expected to roll off the production line and achieve mass production in 2024.

But Xiaomi's EV project is facing difficulties getting regulatory approval and has been discussing licensing issues with officials at the National Development and Reform Commission for months without success, according to a July 29 Bloomberg report.

While some Xiaomi executives hope authorities will eventually give the green light to the electric vehicle project, others fear the process will delay the company's plans, according to the report.

On August 26, Bloomberg said in a separate report that Xiaomi is in talks with BAIC Group about partnering to produce EVs and is exploring different options, including Xiaomi buying a stake in the No. 2 Hyundai plant, which has the full license to produce cars in China.

The partnership could see vehicles built by BAIC BluePark New Energy Technology Co, BAIC Group's electric vehicle brand, and co-branded with Xiaomi.

In a subsequent report, local media Cailian said Xiaomi may take over BAIC's production site in Qingdao, Shandong province in eastern China.

The Sina Tech report today said that Xiaomi's engineering vehicle is complete and that software integration for the vehicle could be completed by mid-October, followed by the opening of various tests.

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