Hefei said to woo Xiaomi’s vehicle business

Beijing (Gasgoo)- Hefei, capital of Anhui province, is in talks with Xiaomi, seeking to convince the smartphone maker to set up vehicle business there, China’s local media outlet 36kr reported on Tuesday, citing several sources familiar with the matter.

Xiaomi announcing its entering into EV market; photo credit: Xiaomi

One source from JAC Motors said that the Hefei-based automaker may become the contract manufacturer of Xiaomi’s vehicles. “JAC has a relatively mature contract manufacturing system and has accumulated much experience via the cooperation with NIO and Volkswagen,” the source added.

“Hefei has a good industrial foundation for new energy vehicle (NEV) segment, which is attractive to Xiaomi,” said another source. Earlier this month, Wang Chuanfu, founder and chairman of BYD company, talked with Hefei government for strategic cooperation, and BYD’s program in Hefei will begin in August.

NeoPark, jointly built by NIO and Hefei, will be another advantage. The electric vehicle industry park, whose construction was kicked off in April, is a world-class smart electric vehicle industry cluster encompassing innovative research and development of vehicles, core parts and components, and autonomous driving. And Lei Jun is also an investor of NIO.

Besides, Xiaomi will also reportedly start its own battery swapping business. On June 23, Youpin Information Technology Co., Ltd., of which Lei Jun, Xiaomi’s founder and CEO, holds 70% stake, expanded its business with sales of new energy vehicle accessories and battery swapping facilities, according to data provider Tianyancha.

Anhui province aims to nurture 3 to 5 NEV enterprises of great influence and a group of key parts suppliers with global competitiveness, according to the province’s 2021-2023 NEV industry development planning. It wants to have over 10 well-known vehicle brands and create world-class NEV and intelligent and connected vehicle (ICV) industry clusters.