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+--- Thread: 000- Other City [Message to Admin] Xiaomi won the Approval to Manufacture Electric Vehicles (/Thread-000-Other-City-Message-to-Admin-Xiaomi-won-the-Approval-to-Manufacture-Electric-Vehicles)
Xiaomi won the Approval to Manufacture Electric Vehicles - M owais sher - 08-26-2023
Xiaomi, the Chinese electronics company, has received the green light to enter the electric vehicle (EV) production sector. In a significant advancement toward its goal of manufacturing cars by the early part of the upcoming year, Xiaomi has gained approval from China's state planner to commence EV production, as disclosed by individuals familiar with the matter.
Sources indicate that the National Development and Reform Commission (NDRC), which oversees new investments and production capacity within China's automotive industry, granted its approval to Xiaomi's EV production plans earlier this month. This development marks only the fourth approval given by the NDRC since the conclusion of 2017. This accomplishment represents a major milestone for Xiaomi, positioning the company to further expand its market presence.
This approval is a critical stride toward Xiaomi's ambition to achieve mass production of EVs, a goal it set nearly two years ago. Nonetheless, the venture still requires clearance from the Ministry of Industry and Information (MIIT). MIIT's evaluation includes the assessment of new models and projects to ensure they meet technical and safety prerequisites. By entering the Chinese automotive manufacturing sector, Xiaomi joins an industry grappling with challenges like overcapacity and slowing demand, leading to intense price competition and strained supplier profitability.
With a decade-long investment commitment of $10 billion in the automotive domain, Xiaomi aims to commence mass production of its initial cars by the first quarter of 2024. However, there are reservations about NDRC's approval process, given concerns about market saturation and decreasing demand. Consequently, meeting the proposed deadlines raises various apprehensions.
Source: Tech DAD