Strategic Move BAIC into EV Territory
In a strategic move, a subsidiary of Beijing’s BAIC Group, BAIC ORV, has formally applied for regulatory approval to manufacture two electric vehicles (EVs) under the renowned Xiaomi brand. The disclosure surfaced on Wednesday through China’s Ministry of Industry and Information website.
Xiaomi’s Diversification Drive
Xiaomi, widely recognized for its prowess in smartphones and home appliances, is now set to make waves in the world’s largest auto market. This development injects fresh vigor into an industry grappling with overcapacity and sagging demand, sparking a fierce price war that’s taking a toll on supplier profits.
The application from BAIC ORV outlines ambitious plans to produce two distinct variants of the upcoming Xiaomi-branded EVs at its facility in Beijing. The SU7, powered by BYD’s lithium iron phosphate batteries, boasts a peak speed of 210 kilometers per hour (kph). Meanwhile, the SU7 Max, featuring CATL’s nickel- and cobalt-based lithium batteries, promises an impressive top speed of 265 kph.
Visuals shared on the Ministry of Industry and Information’s website depict both models proudly adorned with the unmistakable “MI” logo upfront and prominently displaying the “Xiaomi” brand on their rear.
Unique Manufacturing Partnership
What sets this venture apart is that despite Xiaomi having established a plant capable of churning out 200,000 EVs annually in Beijing, the filing suggests that BAIC will take the manufacturing helm for these two models. Reports hint that the new EVs will roll off the assembly line at a location sharing the address with Xiaomi’s plant, as reported by China Business News.
While both BAIC and Xiaomi are yet to officially comment on the EV applications, recruitment drives for various auto sales roles, including positions like new energy vehicles sales manager and Xiaomi car showroom manager in Beijing and Shanghai, have been prominently featured in recent reports from STAR Market Daily.
As reported by Reuters in August, Xiaomi secured preliminary approval from China’s state planner for EV production. However, the final nod from the Ministry of Industry and Information Technology (MIIT) is pending. The MIIT routinely evaluates new automakers and models, publishing lists of aspirants seeking regulatory approvals.
Xiaomi’s strides in EV manufacturing are seemingly outpacing expectations, as highlighted by Xiaomi President Lu Weibing during a late August earnings call. Despite a 4% dip in revenue in the second quarter compared to the previous year, Xiaomi is making notable headway in the competitive EV market amid challenges in China’s smartphone sector.
Industry Challenges and Global Players
China’s automotive landscape is currently grappling with overcapacity and an intense price war involving over 40 brands, applying considerable pressure on profit margins across the supply chain. Worth noting is Tesla Inc.’s ongoing wait for regulatory clearance for its Shanghai plant expansion, while sources hint at a limited likelihood of approval for U.S. luxury EV maker Lucid Group’s locally produced vehicles.
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