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Xiaomi to tie-up with BAIC for electric car production, says report: All you need to know
The Chinese smartphone maker is facing difficulties in getting a regulatory approval for its EV project. For this reason, it is looking to tie-up with the automobile manufacturer, the report said.
Chinese smartphone maker Xiaomi, facing a delay in acquiring a license to make its own electric cars, is, as an alternative, looking to enter into a tie-up with Beijing Automotive Group Co. (BAIC) to produce e-cars, Bloomberg News reported on Friday.
Also Read: Xiaomi's electric car project hits regulatory roadblock
Earlier this year, Xiaomi began construction on its first auto factory, in Beijing, after announcing in March last year its intention to enter the competitive electric vehicle (EV) market.
Here's all you need to know about the possible tie-up:
(1.) Under the agreement, electric vehicles would be built by BAIC's EV brand – BAIC BluePark New Energy Technology Co – and co-branded with Xiaomi, the report said, adding that for production of EVs, the two giants are considering various options, including buying a stake in Beijing Hyundai's ‘No.2 plant’.
(2.) Beijing Hyundai is a joint venture (JV) between Beijing Automotive and South Korea's Hyundai Motor Company. The JV has three manufacturing plants in the Chinese capital, of which the second unit has license to make cars in the country.
(3.) While Xiaomi and BAIC declined to comment on the matter, an executive at the latter's EV unit (Beijing Electric Vehicle Co) said he is not aware of any such talks between Xiaomi and BAIC.
(4.) Meanwhile a Hyundai representative described the claims reported in the Bloomberg story as ‘baseless’.
(5.) Xiaomi's Beijing factory would have an annual production capacity of 300,000 units. The company plans to bring its electric cars to mass production in the first half of 2024.
(With agency inputs)
