Xiaomi may turn to BAIC for car development

Bloomberg reports that Xiaomi is in talks with Beijing Automotive Group Co (BAIC Group) that would see the latter make EVs, co-branded with Xiaomi.

The partnership would allow Xiaomi to reach its goal of producing electric cars by 2024 and may prove necessary given the phone maker's reported regulatory hurdles that have hindered its car project.

There are a few ways for this alleged partnership to work. Xiaomi could potentially buy a stake at Beijing Hyundai No 2 plant, which BAIC and Hyundai opened back in 2002. The plant is in need of more investment in order to make EVs, but could work in a make-do sort of way as it has a license to make cars in China.

Should such an EV project happen, the cars will be made by BAIC BluePark New Energy Technology, BAIC's EV arm, and co-branded by Xiaomi. Xiaomi has pledged $10 billion over the next decade with the goal of mass-producing its own cars by 2024.

Neither Xiaomi nor BAIC has commented on the report as of yet.

Source | Via