Does Xiaomi dream of producing its own electric car?
The fantasy of the car of tomorrow concerns all players in innovation, including companies in the internet and telecom sector. Xiaomi boss Lei Jun himself said last April that he wanted to produce an electric vehicle one day.
The Chinese smartphone maker, which rose very quickly third largest smartphone vendors in the world, would be particularly interested in the new generation car. According to Sina Tech Reports, one of the VPs of Xiaomi, would have met Elon Musk the founder of Tesla, manufacturer of electric cars based near San Francisco, who recently opened its patents to the market.
The Chinese company would work on a new kind of product, and bring the press to bet on an electric car. Would the meeting with Tesla mark this ambition to enter the automotive market?
Yes, but not sure. Yes because Xiaomi is positioned as a “pure player” of innovation (one of its strategists is none other than Hugo Barra, ex Google Android), and, moreover, there is no reason why the company does not deprive itself of diversification. It is already doing this by taking stakes in cloud companies, connected objects, and VoD. In addition, air pollution has become such a problem in large cities that the Chinese authorities have been forced to invest 13 billion euros in Beijing in the construction of an electric park of charging stations. In 2020, China will represent + 25% market share between regions of the world for the electric vehicle. Suffice to say that this domestic market represents strong development potential for Xiaomi.
Not sure. Because the market is littered with many barriers to entry. The Chinese government itself regulates the electric car market, and imposes production on the territory by identified automotive players. But the situation could change, since the commission in charge of development and reform (NDRC) relaxed the rules last month, it would eventually allow the entry into the market of players outside the car market. Xiaomi could one day take part in the adventure. With a Tesla partnership? Everything is possible …