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As one of the world’s leading providers of affordable and high-quality consumer electronics, Xiaomi’s entrance into the automotive industry has created a lot of buzz and excitement. And according to reports, Xiaomi is making significant strides in developing its car, with CEO Lei Jun personally overseeing the division and dedicating over half his time.
During a recent investor day, CEO Lei Jun shared exciting news about the development of Xiaomi’s cars. The R&D team behind the project has grown to over 2,300 members, and they plan to launch the vehicle for mass production by Q1 2024. Lei Jun stated that autonomous driving is playing a crucial role in the car’s development, and they are investing heavily in becoming a leader in this field by 2024. In order to achieve this goal, the company also plans to test over 140 vehicles during the first phase of testing.
Although the company is yet to share details, a Weibo blogger recently shared images of the soon-to-be-announced electric vehicle wandering on the streets of China during winter testing. Jun was also present during this test, demonstrating the company’s dedication to ensuring the success of the project.
Similar profit structure to smartphones
Interestingly, Xiaomi will take a similar approach to profits as they do with their smartphone, i.e. software profits. According to Jun, this approach creates exciting opportunities for integrating different services beyond the sale of a single product. Although the company has not confirmed it yet, it is likely to focus on software features such as autonomous driving and in-car entertainment, which can generate recurring revenue streams for the company.
While Xiaomi has established an automobile facility in Beijing’s Yizhuang, housing the sales and R&D headquarters, the company is also constructing a fully functional vehicle factory with a yearly capacity of 300,000 vehicles, with the first car expected to roll off the production line in 2024.