Construction of the second phase of Xiaomi's EV factory began on July 26 within 24 hours of a land deal.
Chinese smartphone giant Xiaomi (HKG: 1810, OTCMKTS: XIACY) has begun construction on the second phase of its electric vehicle (EV) factory in Beijing, which is set to prepare for the launch of more new models.
Phase 2 of Xiaomi's smart manufacturing industrial base project, which is located in Majuqiao in Beijing's Yizhuang, began construction on July 26 within 24 hours of a land deal, according to a WeChat post yesterday by the Yizhuang development zone management committee.
Yizhuang officials visited the project on July 31 and mentioned that they would provide support for its construction, according to the post.
An affiliate of Beijing-based Xiaomi won the land in the Yizhuang development zone in southeastern Beijing in a bidding for RMB 842 million yuan ($116 million), according to an announcement by local natural resources authorities late last month.
The deal, which was struck on July 25, has a 50-year land grant and a land area of 531,130 square meters.
The land is located on the east side of Xiaomi EV's existing factory and is planned for use in smart car and parts manufacturing projects.
Xiaomi announced in a Hong Kong Stock Exchange announcement on March 30, 2021, that it planned to set up a wholly-owned subsidiary for its smart EV business. This marked its official announcement of its entry into car manufacturing.
At the end of November 2021, Xiaomi signed a deal with Yizhuang authorities to build a 300,000-unit-a-year car factory there.
The plant would be built in two phases, with an annual capacity of 150,000 vehicles in phase 1 and phase 2, respectively, according to an announcement at the time.
Xiaomi launched its first EV model, the SU7, on March 28 and began deliveries in early April.
The company initially used the automobile manufacturing credentials of BAIC Off-road Vehicle, the off-road vehicle business division of BAIC Group, to produce the SU7.
Last month, a regulatory filing revealed that Xiaomi made a refiling of the SU7, with the manufacturer becoming Xiaomi itself, signaling that Xiaomi had gained independent car-making qualification.
Xiaomi SU7 deliveries exceeded 10,000 units in July and will continue to exceed that mark in August, Xiaomi EV said earlier today.
Xiaomi EV will meet its full-year delivery target of 100,000 units ahead of schedule in November, it said.
Xiaomi EV's second model will be an all-electric SUV to take on the Tesla Model Y and is expected to be launched in the first half of 2025, according to a 21jingji report on July 8.
Xiaomi EV's third model will be an extended-range electric vehicle (EREV) and SUV (sport utility vehicle), and will go on sale in 2026, according to the report.
($1 = RMB 7.2198)
Xiaomi EV completes capacity ramp-up, expects to reach 100,000 delivery target by early Nov
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