Three people with direct knowledge of the matter said that China’s Xiaomi plans to use the Great Wall Motor Co., Ltd. factory to produce electric vehicles. In this way, we would be in the presence of the latest technology company to join the smart car race.
According Reuters, Xiaomi cars will be produced in the city of Hong Kong. The brand’s adventure began in 1984 and has now joined the electric car race at the hands of the Chinese giant.
After the international news agency issued an on the plan, the tech company’s share price rose more than 9% in trading on Friday afternoon. Great Wall Hong Kong shares are up more than 15% and Shanghai shares are up their daily maximum limit of 10%.
Two people familiar with the matter told Reuters, subject to their identity, that Xiaomi, one of the world’s largest smartphone makers, is negotiating with a Great Wall factory to produce electric cars under its own brand. Xiaomi will direct its electric vehicles to the mass market based on the broad positioning of its electronic products.
Another close source said Great Wall has not previously provided outsourced manufacturing services to other companies. However, this eventual alliance contemplates the development of an engineering consultancy, to accelerate the progress of the project.
According to what was mentioned in the report, both companies plan to announce this partnership at the beginning of next week, which would bring its first copies of vehicles during 2023.
The future leadership of this field is under permanent dispute. Large companies from the technological and automotive world have already begun their deployment, now these two companies from the Asian giant are joining the road.
Alliances of this type generally arise to combine the strengths of two areas that, up to now, have developed along independent paths that have only recently begun to intersect in a more visible way. Under a similar formula, it was commented in its respective moment Apple’s intention to work with Hyundai in a joint electric vehicle project, an initiative that did not end in success.
In response to inquiries from Reuters, both Xiaomi and Great Wall declined to comment on additional information. Once the announcement of this alliance is made public, we will surely know more information about the movement of these two companies around this project.