Xiaomi has officially entered smart electric vehicles. On March 30, Xiaomi Group (01810.HK) issued a statement after the Hong Kong stock market closed, saying that the board of directors has officially approved the establishment of smart electric vehicle business project, the company plans to set up a wholly-owned subsidiary to take charge of the business, Lei Jun as the chief executive officer of the business.
Xiaomi also said it would provide an initial investment of 10 billion yuan in smart electric vehicles and $10 billion over the next 10 years.
Xiaomi’s plans to enter the electric car industry have already attracted attention. In a statement released late on Feb. 21, Xiaomi acknowledged that it had started research into electric vehicles, but said it had not yet set a project for the business. But news of the car sparked a surge in shares.