Xiaomi, the Chinese electronics giant with a valuation over RMB 100 billion, has announced its entrance into the electric cars market on March 30th. According to an official statement, Xiaomi will set up a wholly-owned subsidiary to operate the smart electric vehicle business. The initial phase of investment will be RMB 10 billion, with the total investment amount over the course of the next 10 years estimated to be USD 10 billion.
Lei Jun, the CEO of Xiaomi Group, will also serve to be the CEO of the smart electric vehicle business. Earlier today, Lei announced on personal social media sites that more details about car production will be revealed at tonight’s Xiaomi Spring product launch event. Xiaomi will outsource car assembly business to contract manufacturers, according to reports by Bloomberg.