The electronic vehicle(EV) industry is getting bigger and better every day. Companies like Tesla have revolutionized the electric automaker sector a lot. In a recent boost to the EV market, China’s Smartphone Giant Xiaomi has announced its entry into the EV sector.
Xiaomi is not the only company that has entered in EV market recently. Apply, Huawei is the other mobile manufacturers that have also shown interest to join the booming EV industry.
Xiaomi Joins EV Business
Xiaomi Corp, a Chinese Smartphone Manufacturing Company, has officially joined the electronic vehicle market. The news was revealed Today while in a filing.
Initially, Xiaomi will invest approximately $1.52 billion in the newly started business. The company also announced that it will Xiaomi owned subsidiary wholly. In the next 10 years, the smartphone giant will fuel $10 billion in the EV sector.
Lei Jun, the CEO of Xiaomi, will also join the EV business as CEO. The company passed this information today.
Xiaomi is following the footsteps of other tech companies in China and globally that have joined the EV industry recently.
Last week Reuters reported exclusively that Xiaomi was in talks to partner with Chinese automaker Great Wall Motor Co for help in manufacturing EVs. Xiaomi and Great Wall both declined this news in a recent filing.
New Players in EV Sector and Growth of EVs
In January, Chinese search engine giant Baidu released the official statement that it will manufacture the EV unit in collaboration with Chinese car manufacturer Geely Automobile Holdings Ltd.
Last month, Reuter informed the world that Huawei Technologies is also planning to enter the growing electronic vehicle industry with Changan, the state-owned automobile manufacturer. Huawei is also in talks with other companies for collaboration purposes.
Apple, the most valued company in the world, has also shown interest in the EV sector, as per the latest reports. Apple did not announce it officially yet. When contacted, there was no response from Apple related to EV business entry.
The EV industry is gearing up for a bright future in the coming years. Based on IHS Markit’s forecast for 2021, electric cars will be having a market share of 3.5% that is a 200% jump compared to 2020. The company also found that EV share will be 10% of the total cars sold by 2025. The research firm also indicated that users acceptance of EV units will grow rapidly.
In the US, Tesla owns a 79% share of all EV registrations in 2020. In the coming years, more companies will bring the competition interesting and the monopoly of Tesla may be reduced up to some extent.
China, another growing market of EVs, is expected to sell 50% more electronic vehicles in 2021 compared to last year. The global EV market saw a surge of 39% in 2020.