Xiaomi continues to expand its product lineup. Having been highly influential in the smartphone market for a long time, and reaching second place in the global market, the company’s next target is the electric vehicle market. The Chinese tech giant is eagerly counting down to start the production of its first EV model. In fact, we recently mentioned that the company was awaiting approval from Beijing to produce its own electric vehicles. Meanwhile, they are also exploring partnerships to expedite the process. According to recent updates, Xiaomi is in talks with Baic Bluepark and Brilliance Auto to outsource the production of its first SUV. Here are the details…
Why is Xiaomi collaborating with other car manufacturers?
According to a recent report by Pandaily, Xiaomi is continuing to search for potential partners to produce its first electric SUV. The latest potential partners are Baic Bluepark and Brilliance Auto. This update emerges as Xiaomi prepares to release its first car, a coupe model, in 2024. In fact, Xiaomi has already established its own car factory in Beijing Yizhuang, boasting an annual production capacity of 150,000 vehicles. However, the company is reportedly exploring collaborations with other car manufacturers to achieve its sales goal of 100,000 cars by 2024.
There are a few reasons why Xiaomi may be choosing to collaborate with other car manufacturers. First, it can help the company to quickly scale up its production capacity. Xiaomi’s own car factory in Beijing Yizhuang has an annual production capacity of 150,000 vehicles, but the company is planning to sell 100,000 cars by 2024. By outsourcing the production of its SUV models to other car manufacturers, Xiaomi can quickly increase its production capacity and meet its sales target.
Second, collaborating with other car manufacturers can help Xiaomi to save money. Building a new car factory is a very expensive undertaking. By outsourcing the production of its SUV models to other car manufacturers, Xiaomi can avoid the cost of building a new factory.
Collaborating with other car manufacturers can also give Xiaomi access to their expertise. Baic Bluepark and Brilliance Auto are both experienced car manufacturers with a good track record of producing SUVs. By partnering with these companies, Xiaomi can take advantage of their expertise and produce high-quality SUV models.
The specific form of cooperation between Xiaomi and Baic Bluepark is still unknown. However, the report suggests that Xiaomi may outsource the production of its SUV models to Baic Bluepark while using its own factory to produce its coupe models. This would make sense, as Baic Bluepark is an experienced SUV manufacturer.
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