Now Xiaomi is also getting into the electric car business

Now Xiaomi is also getting into the electric car business

Shanghai, 3/31/2021

Chinese smartphone maker Xiaomi will produce electric vehicles at the factory of Great Wall Motor (a Chinese automaker), according to Reuters. The vehicles will be manufactured under the Xiaomi brand and will be intended for the mass market.

This partnership is the first instance of Great Wall making its manufacturing capabilities available to another company. The company will provide technical consulting services to accelerate the project. Great Wall sold 1.1 million vehicles last year.

Xiaomi owns an 11.2% share of the global smartphone market and is the third-largest smartphone manufacturer. Xiaomi also sells Internet-connected devices such as scooters and air purifiers.

The tech giant is looking to diversify its revenue, as most of Xiaomi’s revenue comes from its smartphone business, which has thin profit margins.

Shares of Xiaomi ended the day up 6.3% after the report, while Great Wall’s rose 10.4%.

Other tech giants such as Apple, Baidu and Huawei are also looking to make electric vehicles.