Breaking: Xiaomi is entering the Smart Electric Vehicle Business

Xiaomi today announced that the company is officially entering the Smart Electric Vehicle Business.

Xiaomi smart cars soon?

Xiaomi Smart Electric Cars are coming!

Based on its latest publicly-listed document, the board of directors of Xiaomi has resolved to commence the smart electric vehicle business. It shared that the company will set up a wholly-owned subsidiary to operate the business with an investment of CNY 10 billion (around PHP 73.9 billion). The total investment for 10 years will be USD 10 billion (around PHP 485.6 billion).

Xiaomi's newest business venture

Xiaomi Corporation Chairman Lei Jun will concurrently serve as the Chief Executive Officer of the company's smart electric vehicle business.

Xiaomi ended the announcement by saying that they hope to offer quality smart electric vehicles for everyone.

Reuters earlier reported that this plan comes as Xiaomi seeks to diversify its revenue streams from the smartphone business with razor-thin profit margins. It added that the firm plans to launch its first EV around 2023.

What do you guys think?