Smart phone maker Xiaomi Corp is eyeing an electrical vehicle (EV) production tie-up with Beijing Automotive Group (BAIC), as it faces gaps in acquiring a licence to make cars on its own, Bloomberg News documented on Friday (Aug 26).
Such partnership among EV startups and traditional carmakers has become increasingly common in China, as condition planners have been limiting the issuance of manufacturing licences to new EV makers in a bid in order to contain excessive expense.
Chinese EV maker Nio Incorporation, for example , has been joining up with Anhui government-owned Jianghuai Automobile Group (JAC) in vehicle production.
Beneath the deal, Nio vehicles, developed and produced by the startup, needed to bear JAC’s nameplate initially, and each later agreed to fall the nameplate over additional fees.
Xiaomi and BAIC are exploring different options including Xiaomi buying a stake in Beijing Hyundai Number 2 plant, which has a licence to make cars in China, the particular Bloomberg report mentioned, citing people familiar with the matter.
The collaboration could see vehicles constructed by Beijing Automotive’s EV brand, BAIC BluePark New Energy Technology, and co-branded with Xiaomi, the particular report said.
Xiaomi and BAIC declined to remark. An executive at Beijing Electric Vehicle, BAIC’s EV unit, told Reuters which he is not aware of this kind of talks between Xiaomi and BAIC, decreasing to be named because he is not authorised to talk to media.
A Hyundai spokesperson said the claims reported in the story concerning the South Korean firm is “groundless. inch
Beijing Hyundai, the joint venture among Hyundai Motor plus BAIC, has 3 manufacturing plants within Beijing.
Xiaomi started construction upon its first car factory in Beijing earlier this year after declaring its ambition a year ago to enter the aggressive EV sector plus challenge established brands and newer tech companies.
The rose will have annual capability of 300, 500 units.
Xiaomi committed to bringing the cars to mass production in the 1st half of 2024. Recording, the company started structure on its first auto factory within Beijing.