Xiaomi talks electric vehicles with state-owned carmaker FAW Group as it pursues smart car ambitions

Xiaomi held an ‘in-depth’ talk with FAW Group last week in Jilin, where the electronics brand wants to bulk up electric car cooperation

The world’s second-largest smartphone maker jumped into the EV market this year, investing in multiple autonomous driving companies

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Xiaomi has become known in China for its smart home ecosystem, which the company now hopes to extend to electric cars. Photo: SCMP/Simon Song

Published: 5:00pm, 13 Sep 2021Updated: 12:22pm, 14 Sep 2021

Chinese smartphone brand Xiaomi recently held an “in-depth” talk with state-owned carmaker FAW Group as the Beijing-based gadget maker vies for a piece of the country’s rapidly growing electric vehicle (EV) market.

Lei Jun, Xiaomi’s billionaire founder and CEO, paid a visit with his team last week to FAW in Jilin province, according to a report from the state-owned Jilin Daily on Saturday. Xiaomi confirmed the report on Monday, but did not offer additional details.

FAW, or First Auto Works, is best known for its Red Flag sedans driven by state leaders. The company was considered one of the “old sons” of the People’s Republic of China, with a long history of making sedans for the country’s founding leader Mao Zedong.

Xiaomi is a newcomer to the automotive industry, having just announced in March that it was working on its own electric car. Lei said in Jilin that his company must seize the opportunity of deep integration between cars and consumer electronics. Xiaomi will strengthen cooperation with car companies in Jilin to make “high-quality” vehicles, Lei added, without offering details.

Bordering North Korea and Russia, Jilin is one of the northeastern provinces that make up China’s rust belt. It has long promoted the development of key industries boosted by the government, which includes cars and other manufacturing.

FAW is already receiving local government support, according to provincial party secretary Jing Junhai. The government wants FAW to become a world-class enterprise and hopes Xiaomi will be integrated into Jilin’s automotive supply chain, Jing said.

Even before officially announcing its foray into EVs, Xiaomi’s move had been anticipated. It comes amid an explosion of demand for electric cars globally, especially in China, where the industry has been supported with generous subsidies.

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