Xiaomi has invested $435m in electric vehicle development and will begin mass production by mid-2024

This month marks the two-year anniversary of Xiaomi's official announcement to enter the electric car market. The first "battery-powered" car in the smartphone maker's range will arrive within 15 months.

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Lei Jun, the CEO of the Chinese company, spoke in the People's Republic of China's parliament. The top executive said that Xiaomi has invested ¥3 billion (~$435 million) in its electric car division.

In the spring of 2021, Lei Jun promised an initial investment of ¥10 billion (~$1.45 billion) and a total investment of $10 billion within a decade. Since then, Xiaomi has managed to establish a car manufacturing plant. The company's CEO noted that he devotes half of his working time to this particular area, with a team of up to 2,300 people.

The Xiaomi leader said during a speech in Parliament that mass production of electric cars will be launched by mid-2024. The new direction will be beneficial for the company amid falling smartphone shipments. At the end of 2022, the market dipped below 300 million units for the first time in 10 years and Xiaomi's sales fell 20%.

Source: scmp