Xiaomi in talks with BAIC to produce electric cars -Bloomberg News
(Reuters) -Smartphone maker Xiaomi Corp is eyeing an electrical automobile (EV) manufacturing tie-up with Beijing Automotive Group Co (BAIC), because it faces delays in buying a licence to make automobiles by itself, Bloomberg Information reported on Friday.
Such partnership amongst EV startups and conventional carmakers has grow to be more and more frequent in China, as state planners have been limiting the issuance of producing licences to new EV makers in a bid to comprise extreme funding.
Chinese language EV maker Nio Inc, for instance, has been partnering with Anhui government-owned Jianghuai Vehicle Group (JAC) in automobile manufacturing.
Underneath the deal, Nio automobiles, developed and manufactured by the startup, needed to bear JAC’s nameplate initially, and each later agreed to drop the nameplate over extra charges.
Xiaomi and BAIC are exploring varied choices together with Xiaomi shopping for a stake in Beijing Hyundai No. 2 plant, which has a licence to make automobiles in China, the Bloomberg report mentioned, citing folks accustomed to the matter. (https://bloom.bg/3QUjxQF)
The collaboration might see automobiles constructed by Beijing Automotive’s EV model, BAIC BluePark New Power Know-how Co, and co-branded with Xiaomi, the report mentioned.
Xiaomi and BAIC declined to remark. An government at Beijing Electrical Automobile Co, BAIC’s EV unit, informed Reuters that he’s not conscious of such talks between Xiaomi and BAIC, declining to be named as a result of he’s not authorised to speak to media.
A Hyundai spokesperson mentioned the claims reported within the story in regards to the South Korean agency is “groundless.”
Beijing Hyundai, the three way partnership between Hyundai Motor Co and BAIC, has three manufacturing crops in Beijing.
Xiaomi began building on its first auto manufacturing facility in Beijing earlier this yr after declaring its ambition final yr to enter the aggressive EV sector and problem established manufacturers and newer tech corporations.
The plant can have annual capability of 300,000 models.
Xiaomi dedicated to bringing its automobiles to mass manufacturing within the first half of 2024. Earlier this yr, the corporate began building on its first auto manufacturing facility in Beijing.
(Reporting by Baranjot Kaur in Bengaluru; Further reporting by Zoey Zhang in Shanghai; Enhancing by Krishna Chandra Eluri)
