It seems Apple isn’t the only smartphone maker planning to enter the electric car market. According to Reuters news; Xiaomi is preparing to produce an electric car that will reach large masses.
Although details about the electric car are still limited, Xiaomi would integrate the car with other devices. It is said that production of the car will take place at the factory of the Chinese car giant Great Wall. For the release of the first model, arrows point to 2023.
Xiaomi is said to be able to make an official announcement next week. However, no statement has yet been made from Xiaomi or the Great Wall on the issue.
It’s not difficult to unravel the logic behind Xiaomi’s move. It seems the company wants to diversify and strengthen its product portfolio. Xiaomi, one of the largest phone manufacturers in China, is continuing its business with very small profit margins. Problems such as the shortage of chip supply can also easily affect Xiaomi. Electric cars have the potential to generate more revenue for the business over the year.
Xiaomi isn’t the only smartphone manufacturer considering entering the electric car market. Apple and Huawei are said to be working in this direction as well. The Chinese search company Baidu previously announced that it would develop an electric car with the help of Geely. Although it may seem strange for technology companies to enter the automotive sector for the time being, it could turn into a more standard situation in the near future.