BEIJING, October 13 (TMTPost)— Xiaomi Corporation is seeking automaking partners as its highly-anticipated auto unit is moving closer to first mass-produce the electric vehicle (EV). 

Credit：Visual China

Xiaomi has been in talks with several established automobile companies including Chery and Brilliance on production partnership, Bloomberg cited people familiar with the matter. The talks took place as the Chinese smartphone giant is waiting for Beijing’s approval for a license to make EVs itself. The sources said Xiaomi is working to obtain approvals from the Ministry of Industry and Information Technology to be able to start EV production, while casting a wider net for potential partners as China intends to limit EV production licenses when the EV market matures.

Xiaomi is expected to debut its car in 2024, with estimated shipments of 500,000 to 600,000 units, according to a note that TF International Securities analyst Ming Chi Kuo issued following the Bloomberg report. The analyst, who is well known as a reliable source of Apple products, said Xiaomi’s first EV model will have key selling points including autonomous driving, software ecosystem, 800V fast charging, and powertrain specifications, with an estimated price below 300k yuan. If the price approaches or falls below 250k yuan, shipment estimates could be revised upward, Kuo added.

Recent reports signaled Xiaomi’s auto unit is entering final countdown of mass production after more than two years’ investment and preparation. Xiaomi announced in March, 2021 to set up a wholly owned subsidiary to make EVs, with the initial investment of RMB10 billion and the total input in the coming decade expected amount to US$10 billion. Lei Jun said in August 2022 that his company established an R&D team of more than 500 talents, and plans to create a fleet of 140 test vehicles in the first phase of the technology development, targeting to become a leader in the smart EV industry in 2024.

Xiaomi aims to become one of the top five automakers in the world within the coming 15 to 20 years, Lei Jun said in an interview in March. At an earnings conference for the first quarter in May, Xiaomi management said development of EV project is still very well, so they maintained the previous target of mass production in the first half of 2024. Xiaomi President Lu Weibing told analysts at an earnings call in September that the EV business has very well progress, and part of recent progress has even much better than the company’s expectations. He said Xiaomi didn’t change its plan to mass produce EVs in 2024. 

Xiaomi’s EV venture has obtained approval from the National Development and Reform Commission (NDRC), China's top economic planner that regulates production capacity and investments in auto industry, to produce EVs, Reuters reported in September. Chinese digital news media outlet Jiemian later that month learned Xiaomi’s venture will obtain approval from the Ministry of Industry and Information Technology in the coming two months, allowing it to begin full-scale production.

Jiemian reported Xiaomi’s unit has started pilot production for less than a month in its factory in Yizhuang, a town in the southeast suburbs of Beijing, and there are about 50 vehicles to be built per week for test. The Yizhuang facility, built in two phases, is set to have a total annual capacity of 300,000 vehicles, with 150,000 units of each phase, and construction of its first phase has completed and passed acceptance testing in June, according to reports earlier this year. Jiemian said Xiaomi’s auto unit is hiring around 100 workers initially, then launch a large-scale recruitment at the end of the year or early next year.

Earlier this month, Chinese news media outlet 36Kr learned Xiaomi has decided to develop Range-Extended Electric Vehicle (REEV) and made planning about relevant products. Out of Xiaomi’s multiple generations of EV platforms currently under development, the first generation is set to roll out next year and the second to come in 2025, the sources revealed. Given the development schedule, the company could launch REEV following the second generation of platform.  

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