Xiaomi to invest $1.52 billion in new electric vehicle unit

Xiaomi is launching a major initiative to enter the electric vehicle market, announcing a plan to invest 10 billion yuan (approximately $1.52 billion) into a new smart electric vehicle unit over the next decade. The new unit will operate as a wholly-owned subsidiary, with Xiaomi co-founder Lei Jun serving as its CEO while maintaining his role as CEO of the parent company.

As part of its global expansion strategy, Xiaomi aims to enter the European market by 2027. The company plans to utilize local distributors and dealers rather than a direct sales model to build its European network. While specific pricing and vehicle configurations have not been released, the company has highlighted projects such as the SU7, SU7 Ultra, and YU7 GT on its international platforms.

Xiaomi enters a highly competitive landscape in China, the world's largest car market, where it will face established players like Nio, Li Auto, Xpeng, and Tesla.