One of Xiaomi's founders, Lai Jun, had previously stated that in the next ten years the company was willing to invest $10 billion in the production of electric vehicles, and the first cars would begin to be released as early as 2024. Because of the increased bureaucratic barriers for starters in China, Xiaomi was now considering partnering with the BAIC auto concert to achieve that goal.
The Chinese electronics manufacturer's intentions are reported by Bloomberg with reference to information sources, and it is alleged that Xiaomi could re-engineer a car factory built jointly in 2008 by BAIC and Hyundai Motor in China, which will be used to obtain a licence to manufacture electric vehicles, and the Xiaomi site itself will be useful in the long run.
After analysing the financial performance of many Chinese auto producers, the Chinese authorities have become more stringent in the allocation of subsidies and licences for this type of activity, as public funds have been misappropriated by many market participants and the number of subject-matter enterprises has exceeded reasonable limits, while the level of loading of the conveyor has not been high, which has increased transaction costs.
The representatives of BAIC and Xiaomi refused to comment on Bloomberg's rumors, and Hyundai called them unfounded. The Chinese autoprom's history knows successful examples of companies entering the market through acquisition deals. Thus, for example, Li Auto, now considered one of Tesla's three competitors in the Chinese market, was licensed to produce electric cars in 2018.