“We’ll be mass producing EVs in 2024” says Xiaomi

After announcing the formation of an EV manufacturing subsidiary in March 2021, Chinese smart phone manufacturing giant Xiaomi Corporation (HKG: 1810) now says it’s progressing towards mass-market EV production ahead of schedule.

During an update today at Xiaomi’s 2021 Investor Day, CEO Lei Jun, revealed he’s confident the corporation’s EV subsidiary – known as Xiaomi EV, Inc. – will begin “mass production” of electric vehicles in the first half of 2024.

The update from Lei Jun, who also concurrently serves as Chief Executive Officer of the smart electric vehicle subsidiary, has been well received by investors with Xiaomi’s share price up almost 4% to midday in Hong Kong.

Xiaomi invested an initial US$1.6 billion into the EV venture, with an additional US$10 billion capital investment expected over the next nine years. Currently, around 300 people are employed by Xiaomi EV.

When announcing the EV manufacturing plans, Xiaomi said it “hopes to offer quality smart electric vehicles to let everyone in the world enjoy smart living anytime, anywhere”

Xiaomi Jun Xiaomi corporation
Xiaomi CEO, Lei Jun

Chinese Electric vehicle manufacturers have recently delivered strong gains for investors as EV sales in China continue to rise.

Recent sales data revealed BYD Company (SHE: 002594), which is part-owned by Warren Buffet’s Berkshire Hathaway, is dominating the Chinese EV market.

Its share price has risen more than 400% in the past five years.