Earlier today, rumors spread that Xiaomi EV was planning to acquire a 58.5 percent stake in Evergrande NEV in order to use the latter's existing factories to address its capacity issues.
Chinese smartphone giant Xiaomi (HKG: 1810, OTCMKTS: XIACY) has denied that it has plans to acquire a stake Evergrande New Energy Vehicle Group (Evergrande NEV), after related rumors sparked concern.
“Xiaomi EV has never had any plans or moves to acquire or take a controlling stake in Evergrande NEV,” the Weibo account of a Xiaomi spokesperson said in a brief statement today.
Earlier today, rumors surfaced that Xiaomi EV plans to acquire a 58.5 percent stake in Evergrande NEV in order to utilize the latter's existing factory to address its capacity issues.
To boost production capacity of its first model, the SU7, as well as to prepare for the mass production of its next SUV model, Xiaomi EV plans to utilize Evergrande NEV's factory in Tianjin to rapidly expand its production capacity, an auto blogger said.
Xiaomi EV's first model, the SU7, received high acceptance, but its Beijing plant has a combined capacity of 300,000 units in phases 1 and 2, the blogger noted.
Xiaomi EV's factory is located in Yizhuang, southeast of Beijing and just slightly over 100 kilometers from Tianjin.
Xiaomi officially announced its entry into car building on March 30, 2021, and launched the SU7 on March 28 this year.
The sedan is offered in three variants -- standard, Pro, and Max -- with starting prices of RMB 215,900 ($29,800), RMB 245,900, and RMB 299,900, respectively.
The model has gained unprecedented acceptance since its launch, and customers who currently order the SU7 will have to wait at least 30 weeks for delivery, according to data monitored by CnEVPost.
Xiaomi EV is on track to deliver at least 100,000 units for the full year 2024 and will challenge the 120,000-unit delivery target, Xiaomi management said in a May 23 earnings call.
On May 24, Xiaomi EV said the standard version of the SU7 added CATL batteries to the existing ones from FinDreams Battery as part of an effort to boost production capacity.
The standard version of the SU7 was initially launched with batteries supplied only by FinDreams Battery, BYD's battery division.
In August 2021, it was reported that Evergrande Group, the parent company of Evergrande NEV, was in talks with companies including Xiaomi to sell its stake in the EV business. However this was subsequently denied by both companies.
($1 = RMB 7.2466)
Xiaomi raises SU7 delivery target from 100,000 to 120,000 units in 2024
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