Xiaomi confirms plans to produce electric cars

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Xiaomi held an event that was expected with some anxiety. After several rumors, the Chinese company confirmed plans to enter the electric vehicle market. The company said it will invest $ 1.5 billion initially, and projects $ 10 billion over the next ten years. For this new segment, Xiaomi will create a new subsidiary, the CEO Lei Jun will also serve as CEO of the new company.

How we share here, Xiaomi has been in talks with the Great Wall Motor factory on the production of smart cars. Xiaomi founder and CEO Lei Jun said the move to electric cars is one of the company's main growth initiatives for the next decade.

Xiaomi is the third largest smartphone manufacturer in the world. The bet on the electric car segment comes at a time when demand for these electric vehicles is increasing in China. The forecast points to the sale of 1,9 million electric cars in China in 2021, which represents an annual increase of 51%. The Chinese government wants that by 2025, 20% of the cars sold in the country will be electric. 

The competition gets tougher, as Apple and Huawei will also be developing their own vehicles.

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