Beijing (PingWest)- Chinese smartphone maker Xiaomi plans to build electric vehicles (EVs) in Great Wall Motor factory, Reuters reported, citing three sources closed to the matter.
Shares of Xiaomi jumped 9% on the Hong Kong Stock Exchange following the media reports, while Great Wall’s shares on Hong Kong jumped 15% and its Shanghai shares surged 10% to reach maximum daily limit.
Xiaomi is talking with Great Wall’s plant to make its own EVs brand, according to the sources.
Xiaomi’s EVs will target at the mass market, the same strategy and positioning used by its electronic products, the two people said.
Great Wall will provide engineering consultancy to accelerate the project, said one of the sources.
The plan comes at the time when more Chinese tech giants partner with automakers to develop smart EV vehicles.
In January 2021, China’s search giant Baidu has announced to partner with automaker Zhejaing Geely Holding Group to build smart electric vehicles (EV). The new EV companies will count on Geely’s engineering consultancy, car manufacturing expertise and EV modular platform-Sustainable Experience Architecture and Baidu’s intelligent driving system Apollo.
In addition, Huawei has teamed up with Changan Auto and Contemporary Amperex Technology Limited, China’s biggest EV battery maker, to launch a car brand. Huawei offers intelligent mobility solutions for the EVs upon the agreement.
Apart from its smartphone business, Xiaomi has a variety of products in its ecosystem of products, ranging from internet-connect devices, laptops to hair trimmers and vacuum cleaners.