Xiaomi will invest 10 billion dollars in new electric car

Chinese smartphone manufacturer Xiaomi has officially joined the car sector by introducing a new smart electric car (EV) venture that was revealed in a filing on Tuesday.

Initially, 10 billion yuan (1.52 billion dollars) will be invested in the wholly held subsidiary, with a cumulative investment target of 10 billion dollars for the next 10 years.

The business also added that Xiaomi CEO Lei Jun would be the CEO of the smart electric vehicle.

Such moves are being taken by other technical giants both in China and abroad as they venture into the Electronics industry.

China's search giant Baidu Inc. announced in January that it will create an EV unit through a partnership with Geely Automotive Holdings Ltd, a local automobile manufacturer.

Reuters announced in February that Chinese beleaguered smartphone giant Huawei Technologies Co Ltd is currently talking to Changan Car and other companies to produce EVs.

According to sources, Apple has long planned to enter the EV industry.

Reuters announced last week only that Xiaomi was in talks with a partnership in the production of EVs with the Chinese automaker Great Wall Motor Co.

In an exchange filing, Great Wall said that he had not explored such an alliance with Xiaomi. Xiaomi did not comment on the report.

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