Xiaomi Acquires Land for EV Production Expansion

Xiaomi has made a significant move in the electric vehicle (EV) market by acquiring a 131-acre site in Beijing for 842 million yuan ($116 million) to expand production capabilities. This development aligns with CEO Lei Jun's ambitious $10 billion plan to establish Xiaomi as a key player in the EV sector, following the successful launch of its first sedan, the SU7, which received over 100,000 bookings shortly after its release. The new site, adjacent to its existing factory in Yizhuang, will be utilized for the second phase of production, aiming for a total capacity of 150,000 vehicles annually. Despite challenges faced by competitors in a crowded market, including the withdrawal of government subsidies and bankruptcies among rivals, Xiaomi's early success suggests a promising trajectory. The SU7, priced at 215,900 yuan, features two battery options and has garnered attention for its performance and range. With plans to introduce an SUV by 2025, Xiaomi is positioning itself to compete directly with established brands like Tesla and BYD.