Xiaomi Corp., the Chinese technology giant, has acquired a 53-hectare (131-acre) plot in Beijing for 842 million yuan ($116 million) to scale up its electric vehicle (EV) manufacturing capabilities. This purchase follows the positive reception of its initial sedan model.
The newly acquired land is located near Xiaomi’s existing EV production facility in the Yizhuang district of Beijing. According to documents from the Beijing Municipal Commission of Planning and Natural Resources, the acquisition was made through Xiaomi Jingxi Technology Ltd., a Xiaomi subsidiary. The site will be dedicated to advancing high-end automotive and new energy intelligent vehicle technologies.
Xiaomi entered the electric vehicle sector in March with the launch of its SU7 base model, priced at 215,900 yuan (~30,000$). This move is part of Chief Executive Officer Lei Jun’s ambitious $10 billion strategy to establish Xiaomi as a significant player in the EV market. Lei announced earlier this month that the company has already delivered 30,000 vehicles and is on track to meet its 2024 target of 100,000 units by November.
Xiaomi’s entry into the EV market contrasts sharply with other players who are struggling amid a saturated industry. The phase-out of national subsidies for EV purchases in 2022 has led to a slowdown in demand, causing several EV manufacturers like WM Motor Technology Group and Human Horizons’ HiPhi brand to either go bankrupt or halt production.
Additionally, Xiaomi plans to introduce a sport utility vehicle akin to Tesla’s Model Y by 2025. The company has also announced the second phase of its car factory development, with construction expected to be completed by 2025. The initial phase of the factory has a production capacity of 150,000 vehicles annually.
Xiaomi has not yet responded to inquiries about the recent land acquisition. Notably, the company obtained its independent car manufacturing qualification in July, eliminating its dependence on the permit previously held by state-owned BAIC Motor Corp.
