The Chinese company Xiaomi is facing difficulties with the authorities, who are slow to give it the green light to manufacture its electric car.
We have been hearing about the Xiaomi project since the beginning of 2021, which wants to enter the world of electric cars. A very competitive market, in which new brands such as Nio, Xpeng or Li Auto have also entered.
But there is no doubt that the Chinese firm, which specializes in technology and is particularly known for its smartphones, will miss its chance as it is branching out into multiple fields. Recently, the company gave more details about its project, while in particular it plans to launch not one, but several electric cars.
Some administrative difficulties
A few days ago, we announced in an article that Xiaomi could lift the veil on its first electric vehicle starting in August. Except here, he’s not quite ready to hit the road yet. And not only because its production has not yet started. Indeed, the Asian firm is currently blocked by the Chinese government, which is slow to give the green light. In fact, the brands that want to start manufacturing electric cars must obtain authorization from the State. However, this is becoming increasingly difficult to obtain.
In fact, China has toughened the exam for new builders, due to the boom in this field that has led to numerous bankruptcies. From now on, and as explained by our colleagues from Bloomberg, candidates must present several documents that prove their seriousness and viability. In particular, they must be able to demonstrate your good financial health and technological capabilities. The government can take several months to give its decision, but it can also reject applications.
A first car in 2024
For now, Xiaomi is therefore waiting for the decision of the authorities, which will then allow it to obtain its license authorizing it to manufacture electric cars.. If for the moment this has not prevented it from moving forward with the development of its first vehicle, this difficulty, if it takes time to overcome it, could mean a delay in the commercial launch initially planned for 2024. In addition, the Chinese firm runs the risk of being overtaken even more so for its rivals such as Xpeng or Nio, already well launched on the market.
This day, Xiaomi’s EV division has no less than 1,000 employees, who work on the development of this project valued at 10,000 million dollars. Lei Jun, co-founder of the brand, wants to diversify the activities of his company, which recorded a 36% drop in sales in the first quarter in the smartphone market. At the moment, no information has been confirmed about the firm’s first electric car, which will first be unveiled in prototype form. Xiaomi plans to produce no less than 300,000 vehicles every year from 2024, at its factory in Beijing.
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