The China-owned company named Xiaomi is planning to make Electric Vehicles (EVs) using the Great Wall Motor Co Ltd.’s factory. This is said by three people who have direct knowledge of this matter. According to them, Xiaomi is talking about upgrading itself to the latest tech firm. The company is wanting to join the smart mobility race.
The tech firm’s stock price was up more than 9% in the afternoon after Reuters reported the plan. Similarly, the Great Wall’s Hong Kong stock price rose more than 15%, and the Shanghai shares went up by their maximum 10% daily limit.
Xiaomi, one of the biggest smartphone developers in China, is in talks to use one of the Great Wall’s plants in China to make EVs. The EVs would be manufactured under the brand name of Xiaomi.
The EVs of Xiaomi will target the mass market. The electronic products will get a broader position as per the two unidentified people.
Great Walls has never offered manufacturing services to any other company, but history has changed this time. Great Wall will expectedly be offering engineering consultancy to Xiaomi, which will speed up the project. Both the companies are planning to reveal the partnership by next week as reported by another person.
Lei Jun- the founder and chief executive of Xiaomi, believes that its experience and expertise in hardware manufacturing are beneficial for the brand. It will work in accelerating the design and production of its EVs.
“Xiaomi wants to find a mature automobile manufacturer to provide model infrastructure, enabling its advantages in mobile internet technology,”
said Alan Kang, senior analyst at LMC Automotive.