Xiaomi Automobile may not have unveiled its first electric vehicle yet, but it has extremely high and ambitious goals as it wants to quickly establish itself as one of the biggest car manufacturers in the world.
The Chinese tech giant has no previous experience in the automotive industry, but its founder Lei Jun tweeted that Xiaomi expects to sell more than 10 million vehicles a year:
“EV manufacturing cap has been reduced dramatically compared to cars with conventional engines: 30,000 parts are highly modular and battery costs have dropped by 80% over the last ten years, with at least 50% more room for cost reduction in the future . As such, I think of electricity as a form of consumer electronics with a focus on intelligence, software and user experience. The core of the automotive industry will evolve from mechanics to consumer electronics, where market share is highly concentrated among major players,” wrote Jun.
Lei further stated that he believes the top 5 brands in the world will hold more than 80% of the electric market share when the industry matures, adding:
“In other words, the only way to be successful is to be in the top 5 and deliver more than 10 million cars a year. The competition will be brutal.”
The tech company will invest around $10 billion over the next decade in producing electric cars.
This is the company's biggest internal restructuring to enter China's fast-growing electric vehicle market.