ArenaEV.com ArenaEV.com

Facebook

Twitter

Instagram

RSS

Settings
Units
Power
Standard
Consumption
Currency

Log in

Login

I forgot my password
Sign up
ADVERTISEMENTS

Xiaomi's $10 billion car project hits regulatory speed bump

  • Post your comment
  • Comments (2)

Max McDee, 29 July 2022

Xiaomi

Xiaomi hit an unexpected obstacle on its way to enter the automotive market. The company is in the advanced stages of its first vehicle's development, the car itself is set to be unveiled in a matter of weeks, but it may have to put the brakes on for a while.

China has experienced an unprecedented growth in the EV industry, but there's also a downside to that. Many new businesses fail as is the normal process, but the Chinese automotive industry has been heavily hit by a recent spate of high profile bankruptcies and the authorities are stepping up approval requirements for any new automotive venture.

Lei Jun, the co-founder of Xiaomi Lei Jun, the co-founder of Xiaomi

The company has been asked to provide additional documents to prove not only its financial capabilities, but the technological know-how as well. The additional paperwork needs a review, which most likely will take months and can generate further requests for additional information. If the application for vehicle manufacturing from Xiaomi gets rejected, the company will have to start the process all over again.

The company already purchased the land for new factory The company already purchased the land for new factory

Unfortunately for Xiaomi, the EV world isn’t waiting, the competitors are advancing at a breakneck pace and the longer the company has to wait, the more ground it will have to cover to catch up. Xiaomi just recorded its first decline in phone sales in a while this year and the EV endeavor is supposed to bring the new customers in, but any more delays will hurt the company.

The R&D phase is finished for the first ever car from Xiaomi, the lack of license doesn’t stop the design process or manufacturing preparations. The company already employs over 1,000 personnel and it has acquired land where it wants to build its factory, with a hope to start selling the car in 2024. But no license means no production will be allowed.

It may be a long time before we see Xiaomi cars on the production line It may be a long time before we see Xiaomi cars on the production line

The whole process may add up months and possibly even a year to the planned schedule and it will require additional investment.

Mr Lei Jun pledged to invest $10 billion over the next 10 years to get the project off the ground but he may have to invest some of that money a bit earlier than he thought. The market reacted immediately to the news with the shares dropping 5.4% in Hong Kong.

Source

Related articles
  • Xiaomi YU7 SUV sets the EV market on fire with record-breaking orders Xiaomi YU7 SUV sets the EV market on fire with record-breaking orders
  • Xiaomi cars now come with deep Apple ecosystem integration Xiaomi cars now come with deep Apple ecosystem integration
  • Xiaomi SU7 gatecrashes the Nurburgring elite with a 6:22 lap Xiaomi SU7 gatecrashes the Nurburgring elite with a 6:22 lap
  • Xiaomi YU7 Max interior, design, and features review Xiaomi YU7 Max interior, design, and features review

Reader comments

D
  • Darknoor
  • m4y
  • 30 Jul 2022

Such an idiotic late law only ruins things, one would expect this from KSA no PRC

  • Reply
C
  • CptPower
  • SH3
  • 29 Jul 2022

Well lets see how this ends.

  • Reply
  • Read all comments
  • Post your comment
Total reader comments: 2

  • Home
  • Compare
  • News
  • Terms
  • Reviews
  • About us
  • Tesla
  • Volkswagen
  • Audi
  • Porsche
  • BMW
  • Mercedes
  • Hyundai
  • Kia
  • Genesis
  • Renault
  • Nissan
  • Ford
  • Volvo
  • Polestar
  • Jaguar
  • Toyota
  • Mazda
  • Mini
  • MG
  • Vinfast
  • Lucid
  • Rivian
  • Cadillac
  • Chevrolet
  • GMC
  • Subaru
  • Nio
  • Xpeng
  • BYD
  • [..]

EV finder

ADVERTISEMENTS

Latest models

  • ModelXiaomi
    YU7 Max
  • ModelNissan
    Leaf 75kWh
  • ModelTesla
    Model S Plaid
  • ModelNissan
    Micra EV 52kWh
  • ModelTesla
    Model X Plaid
  • ModelGenesis
    GV60 Performance AWD

Featured

  • Different types of electric motors used in EVs Different types of electric motors used in EVs
  • Analyzing the Mercedes-Benz EQXX revolutionary concept Analyzing the Mercedes-Benz EQXX revolutionary concept
  • Here's a breakdown of the cost of an EV battery Here's a breakdown of the cost of an EV battery
  • Why solar panels on cars make no sense (at this point) Why solar panels on cars make no sense (at this point)
  • AC/DC - basics of EV charging explained AC/DC - basics of EV charging explained
ADVERTISEMENTS

Reviews

  • Zeekr 001 with 140 kWh Qilin battery real life range test results Zeekr 001 with 140 kWh Qilin battery real life range test results
  • Hyundai Ioniq 6 LR AWD review Hyundai Ioniq 6 LR AWD review
  • BMW iX2 xDrive30 review BMW iX2 xDrive30 review
  • Mini Cooper SE JCW review Mini Cooper SE JCW review

Home News Compare About us RSS feed Facebook Twitter Instagram

© 2022-2025 ArenaEV.com Mobile version EV Finder Glossary Privacy Terms of use

From the team behind
GSMArena.com