SAWT BEIRUT INTERNATIONAL

| 6 December 2022, Tuesday |

Exclusive: Chinese smartphone maker Xiaomi to make EVs using Great Wall’s plant – sources

According to three people with direct knowledge of the matter, Xiaomi Corp plans to manufacture electric vehicles (EVs) at Great Wall Motor Co Ltd’s plant, making it the latest tech company to join the smart mobility race.

After Reuters announced the proposal, the stock price of the tech company jumped more than 9% in afternoon Friday trading. The Hong Kong stock of Great Wall increased by more than 15%, while the Shanghai stock increased by the maximum daily limit of 10%.

Xiaomi, one of the world’s biggest smartphone makers, is in talks to use one of Great Wall’s plants in China to make EVs under its own brand, said two of the people, who declined to be identified as the information is not public.

Xiaomi will aim its EVs at the mass market, in line with the broader positioning of its electronics products, the two people said.

Great Wall, which has not before offered manufacturing services to other companies, will provide engineering consultancy to speed up the project, said one of the people.

Both companies plan to announce the partnership as soon as early next week, said another person.

Xiaomi and Great Wall declined to comment.

SMARTER VEHICLES

The plan comes as Xiaomi seeks to diversify its revenue streams from the smartphone business which accounts for the bulk of its income but carries razor-thin profit margins. It flagged on Wednesday rising costs from a global chip shortage and reported quarterly revenue below market estimates.

The move also comes against the backdrop of automakers and tech firms working closer together to develop smarter vehicles with technology such as smart cabins and autonomous driving.

Chinese search engine provider Baidu Inc said in January it plans to make EVs using an auto plant owned by Geely – an automaker with aspirations to offer engineering consultancy and contract manufacturing.

Reuters has also reported Apple Inc and Huawei Technologies Co Ltd’s respective auto ambitions.

Xiaomi’s founder and chief executive, Lei Jun, believes the firm’s expertise in hardware manufacturing will help accelerate the design and production of its EVs, one of the people said.

“Xiaomi’s advantages in operating systems and home furnishing also bring a lot of imagination for such cooperation in the future.”

Alongside smartphones, Xiaomi makes dozens of internet-connected devices including scooters, air purifiers and rice cookers.

The firm plans to launch its first EV around 2023, one of the people said. It will enable its cars to connect with other devices in its product eco-system, the people said.

Baoding-based Great Wall, China’s biggest pickup truck maker, this year launched a standalone brand for electric and smart vehicles. It is also building an EV factory in China with Germany’s BMW AG.

The automaker sold 1.11 million vehicles last year helped by the popularity of models such as the P-series pickup truck and Ora EVs. It is currently building its first factory in Thailand.

    Source:
  • Reuters