Xiaomi will manufacture its pure electric vehicles in the Chinese tech giant's auto factory in the Beijing Economic-Technological Development Area, according to a report.
Xiaomi's cars will not be made by Chinese state-owned carmaker BAIC Group, The Paper reported yesterday. Data from the Ministry of Industry and Information Technology also shows the production address as No. 21 Huanjing Road, Beijing Economic-Technological Development Area, the address of Xiaomi's plant, the report said.
Xiaomi officials did not disclose if the company has car production qualifications or if it will barrow one from BAIC, the report showed.
Two Xiaomi-branded EVs appeared in the new car declaration catalog released by China's Ministry of Industry and Information Technology yesterday. The ministry's data showed that the vehicles will be made by a unit of BAIC.
Xiaomi should be able to obtain production qualification, but it needs to go through a process that will take some time, according to the report, citing Zhang Xiang, president of the New Energy Vehicle Technology Research Institute. "The car listing needs to seize the window period to grab the market, so it may first borrow BAIC's qualification to produce autos as early as possible," Zhang added.
Xiaomi's SU7 and SU7 MAX inclusion in the MIIT's catalog, which lists new models that have passed official tests and certifications and are about to be put on the market, likely means that the Beijing-based firm is about to start mass production.
The SU7 appears to be a mix between a Porsche Taycan and a Tesla Model 3, with both Xiaomi autos having five seats with a wheelbase of 3000 millimeters, larger than the Taycan. The handset maker's cars will use Contemporary Amperex Technology's ternary lithium-ion batteries and lithium iron phosphate batteries supplied by BYD's Ferdi brand.
Xiaomi's vehicles are in the pilot production stage, with 50 sample cars made per week and a likely annual capacity of 150,000 units in the future, according to previous institutional research.
Xiaomi can give full play to the advantages of intelligent interaction between cars and phones, channel operation, and brand promotion, Huatai Securities noted. It will likely release its first pure EV in the first half of next year, it added.
Shares of Xiaomi [HKG: 1810] ended 5.8 percent lower at HKD15.82 (USD2.03) apiece in Hong Kong today, after plunging by as much as 7.1 percent in the morning trading session.