Xiaomi is entering China’s car manufacturing industry with bold determination,despite challenges in the vast automobile market. The company’s entry into electric car production will bring it into competition with established manufacturers. Notably, tech giants like Apple and Sony are also exploring car manufacturing, with Sony even revealing a prototype electric car developed in collaboration with Honda.
Phased Construction and Testing: Mapping Xiaomi’s Strategic Development Timeline
According to a report by First Financial Daily, Xiaomi’s car factory construction is divided into two phases: Phase 1, spanning 720,000 square meters, started in April 2022 and is set to finish by June 2023. Phase 2 is scheduled for 2024-2025. The facility will consist of four buildings and a modern testing facility, targeting an annual production of 150,000 vehicles. Notably, the factory passed inspection on June 12. Xiaomi car has been spotted undergoing tests numerous times in diverse weather conditions.
The Xiaomi car factory in Beijing’s Yizhuang district is located in an undeveloped area, bordered by an office park, Beijing Fangxindian, and open land to the south. The facility currently has a quiet atmosphere with minimal employee activities and subdued construction noises. A lone security guard watches over the unfinished southeastern entrance. The factory spans from Tongyi Road to Huanjing West First Road, and from Jingsheng South Fourth Street to Yitong Street.
Xiaomi’s CEO, Lei Jun, is confident that their cars will enter full production by early 2024, aligning with their goal to become one of the world’s top five car manufacturers.
Xiaomi’s Q2 2023 financial results reflect a positive outlook, with a quarterly revenue of 67.4 billion ($9.4 billion) yuan and a 13% increase compared to the previous quarter. The adjusted net profit saw remarkable year-over-year growth of 147%, reaching 5.1 billion yuan ($714 million) and surpassing market expectations. The company’s investments, particularly in areas like electric vehicles, also saw a rise, reaching 1.4 billion yuan ($196 million) with plans to roll out 100,000 EVs in 2024.
Xiaomi Group’s President, Lu Weibing, highlighted the company’s dedication to the automotive sector, outlining intentions to increase investments for extensive research and development. Xiaomi aims to secure a place among the top five global car manufacturers and is committed to establishing its own car factories.