Smartphone Maker Xiaomi Enter Mobility Race, Partners With Great Wall to Make EVs: Report

March 26, 2021 6:26 AM EDT

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Chinese smartphone maker Xiaomi will start producing electric vehicles (EVs) in partnership with Great Wall Motor Co, the largest sport utility vehicle and pick-up truck producer in China, Reuters reports.

This way, Xiaomi is the latest tech firm to join the EV race. Shares of the smartphone maker soared over 9% in Hong Kong today, while the Great Wall stock price gained about 14%.

“Xiaomi wants to find a mature automobile manufacturer to provide model infrastructure, enabling its own advantages in mobile internet technology,” said Alan Kang, senior analyst at LMC Automotive.

“Xiaomi’s advantages in operating systems and home furnishing also bring a lot of imagination for such cooperation in the future.”

Xiaomi plans to use one of Great Wall’s facilities in China to produce EVs under its own name, according to Reuters. Furthermore, Great Wall will support Xiaomi with car engineering consultancy to expedite the process.

The company will target a broader target group with its EV, as it is doing with the smartphone it produces.

The Chinese tech company announced yesterday its profit soared on the back of the decreasing market share for Huawei. The company saw its sales rose by 25% in the quarter ended December to $10.79 billion while adjusted profit soared 37%. Huawei missed on the revenue front but its earnings came in higher-than-expected.

The company has also joined other tech businesses that are struggling with the lack of semiconductors.

“To be honest, we will do our best to offer the best price we can to consumers. But sometimes, we may have to pass part of the cost increase to the consumer in different cases. We are feeling pressure, but we are looking okay,” Xiaomi’s President Wang Xiang said on an earnings call.

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