Xiaomi declines to comment on rumored acquisition of JAC Group’s shares

Shanghai (Gasgoo)- Xiaomi has no deliberation with JAC Group regarding either contract manufacturing or acquisition of equity interests, the young electric vehicle player told a local media outlet, in response to a recent rumor saying Xiaomi plans to acquire stake in the Hefei-based automaker.

“We decline to comment on this rumor,” said Xiaomi.

Photo credit: Xiaomi

This was not the first time for the two companies to be rumored to form cooperation. In this year's July, a local report said Xiaomi's electric vehicle business was expected to be headquartered in Hefei and might choose JAC Group as its contract manufacturer. The automaker afterwards claimed the report was a falsehood.

In late March this year, Xiaomi announced its foray into the electric vehicle market and revealed the plan to invest $10 billion in this business over the next decade. Later in September, the company officially registered Xiaomi Automobile Co.,Ltd., an independent entity for Xiaomi's electric vehicle segment. The EV firm was incorporated in Beijing, rather than the previously rumored Hefei.

Xiaomi would begin the volume production of its electric vehicles in the first half of 2024, Lei Jun, Chairman and CEO of Xiaomi, revealed in October at an investor meeting day. He is also the CEO of Xiaomi Automobile Co.,Ltd.

The smartphone giant built its second automobile company last week. Dubbed Xiaomi Automotive Technology Co.,Ltd., the new firm involves a registered capital of 1 billion yuan ($156.6 million) and is also headed by Lei Jun, according to the company information inquiry platform Tianyancha. Its line of businesses include the manufacturing of new energy vehicles, auto parts, and lithium batteries, as well as the R&D of electric motors, electric control units, and the technologies related to vehicles, auto components.