Smartphone giant Xiaomi said to be planning electric vehicles made in Great Wall’s factory
- Xiaomi joins tech firms, such as Apple and Huawei, that are reportedly pushing into smart mobility
- The Chinese gadget maker aims to launch its first electric vehicle for the mass market around 2023, sources said
China’s Xiaomi Corp plans to make electric vehicles (EVs) using Great Wall Motor Co Ltd’s factory, said three people with direct knowledge of the matter, making it the latest tech firm to join the smart mobility race.
The tech firm’s stock price jumped as much as 6.71 per cent in early Friday trade after Reuters reported the plan. Great Wall’s Hong Kong stock rose more than 8 per cent and its Shanghai shares gained more than 7 per cent.
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 one of the people.
Xiaomi and Great Wall declined to comment.
The plan comes as eight-year-old 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.