Back on March 30, Xiaomi made an official statement where it announced its intention to manufacture cars. Since then, Xiaomi has been making continuous efforts to build EVs. And today, i.e. on September 1, Xiaomi has announced that Xiaomi Automobile Co. Ltd. has been incorporated with a registered capital of 10 billion yuan. However, the interesting point is that Xiaomi founder Lei Jun will personally serve as the legal representative of the new Xiaomi Automobile company. The official announcement from the brand came through a Weibo post.
Further, judging from the current situation, it is still a mystery where the location of the manufacturing plant of Xiaomi’s car project will be. It is understood that Beijing, Wuhan, Shanghai, Hefei, Xi’an and other places have already won for Xiaomi car-making projects. Since the official announcement of car manufacturing which came in March, Lei Jun has visited a number of automobile manufacturers. Apart from it, he also visited supply chain companies. And further personally announced the aspect of autonomous driving and made different job advertisements. But for now, the registration and establishment of Xiaomi Automobile is undoubtedly an essential milestone in Xiaomi’s car-making project.
Xiaomi automobile was established with a registered capital of 10 billion Yuan!
As said above, earlier today, Lei Jun announced that Xiaomi Automobile Co., Ltd has officially completed the industrial and commercial registration with a registered capital of 10 billion yuan. The milestone for the brand is the legal representative of the company, which is handled by Lei Jun himself. Back on March 30, 2021, the Xiaomi Group made an announcement that the brand will make an initial investment of 10 billion yuan. They also added that the investment is expected to be 10 billion US dollars in the upcoming ten years. Further, Lei Jun, who is also the CEO of Xiaomi group, will concurrently serve as the CEO of the intelligent electric vehicle business too.
Further, it also means that once the initial investment amount is implemented, the Xiaomi car project is expected to accelerate at a higher rate. Ever since the announcement of Xiaomi to manufacture cars, Xiaomi has been regarded as a phenomenon-level company that boosts the confidence of industry, broadens development space, and will also accelerate the industry progress. In contrast, back on August 25, Xiaomi had called for a media conference, and the same was announced for presenting the second-quarter financial report of Xiaomi Group.
In that conference, the Xiaomi Group President Wang Xiang said that since his company is starting to build cars, he has deeply felt the car industry’s love for Xiaomi. He also added that the group had received more than 20,000 resumes. At present, since Xiaomi is entering the manufacturing of cars, the team have to carefully select it. Currently, the brand formed a team that consists of about 300 people.
Financial report of Xiaomi for Q2 of 2021!
At the same time, Xiaomi also released the Xiaomi Group’s financial report for the second quarter of 2021. It tells us that both the group’s revenue and net profit hit record data. That is, the Q2 revenue rose to 87.8 billion yuan which records a year-on-year increase of 64%. At the same time, the adjusted net profit stood at 6.3 billion yuan which also records a year-on-year increase of 87.4%. As said, both of them has once again broken a single-season record. To be more specific, the innovative phone business made a strong growth. Both the revenue and shipments in a single quarter created a record growth.
In the second quarter of 2021, the smartphone revenue reached 59.1 billion yuan, recording a year-on-year increase of 86.8%. The global smartphone shipments also reached at 52.9 million units which record a year-on-year increase of 86.8%. At the same, as per the data released by Canalys. The global market share of Xiaomi smartphones reached at 16.7% in the second quarter of 2021. Further, the brand also secured the second position in the world for the first time.
According to Lei Jun, currently, Xiaomi Group has more than 16,000 engineers. And as said, it will invest about 10 billion yuan in R&D in 2021. The brand has sufficient confidence in talent reserves and technology accumulation. Lei Jun also added that Xiaomi’s technological advantages in artificial intelligence. New materials and other fields will be strong support for the upcoming automotive business.
Xiaomi isn’t entering the car business without preparations; They have made a lot of preparations to build cars.
In order to enter into the automotive field, Xiaomi has done a lot of hard work. According to Lei Jun, ever since the announcement of the car’s production, i.e. from the last five months to the company’s official registration, they have done a great work. That is, the team conducted a large number of user research and industry chain inspections. And it includes more than 2,000 surveys and interviews. They also visited and had in-depth communication with more than a dozen of industry peers and partners. At the same time, the product definition and team building of the automobile was also promoted in full swing.
In addition to the frequent visits to auto manufacturing companies and supply chain companies. The brand’s investment in the automotive field has also been in full swing without any delays. According to the statistics from Soochow Securities, the deployment of Xiaomi in the automotive field has been a success since 2014. The “Shunwei Capital” was established by Xiaomi Group. And its founder Lei Jun has carried out a large number of industrial investment layouts in the automotive field. It involves LIDAR, autonomous driving, three electric systems. It also extends to smart cockpit hardware, car networking and in other various other fields.
Back on August 25, Xiaomi announced that the company has agreed to acquire 125 million equity shares and 508.547 million preferred shares. These are sold by the sellers of equity shareholders and preferred shareholders of Shenzhen Motion Technology. It accounts for 71.16% and 28.84% of Deepmotion’s issued share capital. The total transaction volume is at USD 73.7 billion, which roughly converts to 500 million yuan. After the completion of the acquisition, Xiaomi will hold all shares in Shenzhen Dongli Technology. You can read more about the acquisition of Deepmotion by clicking here.
Xiaomi’s investment in Autonomous driving!
In other related news, Xiaomi’s self-driving research and development are also continuing to advance. Before this, Xiaomi has released multiple recruitment information rounds that cover everything, starting from car chassis, vehicle architecture to interiors and autonomous driving. Before this, Lei Jun also personally came forward to check and posted an autopilot recruitment advertisement on the microblogging platform Weibo.
It is worth mentioning that from the job advertisement which was posted by Lei Jun. That is, the autonomous driving department of Xiaomi Automotive directly skips the L2 and L3 levels of autonomous driving. They have self-developed the L4 level of autonomous driving.
Soochow Securities said that autonomous driving is the core capability of electric vehicles in the intelligent era. And it is also the field that has the highest barriers. The three autopilot companies in which Xiaomi has invested are Momenta, ZongMu Technology and Zhixingzhe. It will help Xiaomi to realize L1/L2 ADAS driving assistance functions and L3/L4 high-level autonomous driving functions. Further, the acquisition of DeepMotion will help Xiaomi to absorb the autonomous driving technology better.
Where will Xiaomi’s car manufacturing plant would finally land?
As we mentioned above, Xiaomi has finally registered and established its automobile company named Xiaomi Automobile. It will be where Xiaomi’s dream car manufacturing project will finally land. It was in March that Xiaomi announced its plan of entering into car manufacturing. Ever since then, the same was also the focal point of the industry.
Recently, it has been reported that the headquarters and first factory of Xiaomi Automobile are basically settled in Beijing. But they are judging from the recruitment information that was recently shared by Lei Jun. The employees of Xiaomi’s auto-driving department have been indifferent support offices located across multiple locations in the country.
In fact, ever since Xiaomi’s announcement of Xiaomi came that it will build a car, the location of its headquarters and factory has attracted much attention. For your information, Beijing, Shanghai, Wuhan, Hefei, Xi’an and a few other places are all competing for Xiaomi car projects. Earlier, Wuhan Economic Development Zone once stated that the Economic Development Zone has set up a particular work class for the first time and will actively and enthusiastically connect with Xiaomi.
They will also fully display the high-quality automobile ecosystem and ideal business environment in the zone. Further, they will also strive for the possibility of cooperation. It must be mentioned that, after 30 years of development, the Wuhan Economic Development Zone has made the automobile industry a pillar industry. And it is known as the “Valley of Vehicles in China”.
Xiaomi’s official response
As said, ever since then, the speculation about the “settling of Xiaomi” has not been interrupted. Beijing, Shanghai, Hefei, Xi’an and other cities have successively reported their “scandals” with Xiaomi cars. Back in April 2021, the Xi’an Investment Cooperation Bureau also stated in response to questions. They said they would continue to closely connect with the “Xiaomi Cars” project based on the current development of the new energy automobile industry in Xi’an.
Further, in response to the above news, Wang Hua, the general manager of Xiaomi’s public relations department, once issued a response to market news on the microblogging platform Weibo. He said that “All official disclosures shall prevail.” Wang Hua also added that the “Part of the information about our company’s car manufacturing has been spreading more and more outrageously in recent times.
Since then, he landed in Beijing and Shanghai and deliberately emphasized that Wuhan did not give a green signal. In addition to landing, regarding recruitment and salary, he said that the topic of options also made me jealous, independent options at every turn, and even rumours said that the total salary package was 20 million yuan. Apart from this, Wang Hua also stated that all the above are not facts, and all official disclosures shall prevail. Stay updated with us to know more about Xiaomi’s car manufacturing.